Title: QUIZ: Bankruptcy: When All Else Fails -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Bankruptcy: When All Else Fails -- Page One Economics®

Q: A __________ is helpful in keeping your finances in order and preventing financial trouble.
- budget
- bankruptcy
- credit report
- background check
A: budget

Q: A person’s payment history can be found in a
- budget.
- contract.
- credit score.
- credit report.
A: credit report.

Q: In which of the following situations would the person likely consider filing for bankruptcy?
- Several bills are due and the person is forced to make a payment plan to cover them.
- This month’s budget is not balanced because of a major car repair.
- A person is late on two to three credit card payments.
- A person is months behind on paying bills with no possibility of ever paying all the debt back.
A: A person is months behind on paying bills with no possibility of ever paying all the debt back.

Q: A debtor is
- an exchange, promise, or agreement between two parties that is enforceable by law.
- a person or an organization that owes an amount of money.
- a person, financial institution, or other business that lends money.
- a tool you can use to help keep your finances in order.
A: a person or an organization that owes an amount of money.

Q: Bankruptcy cases are handled at the __________ level of court.
- city
- county
- state
- federal
A: federal

Q: Once a person’s debt has been discharged, only a small portion has to be paid back.
- True
- False
A: False

Q: Which of the following statements is true?
- Once an automatic stay is in place, creditors may start contacting debtors.
- Bankruptcy protection gives creditors legal support to collect what is owed them.
- All debt can be included in a bankruptcy case.
- Once a debt is discharged, the debtor will never have to repay it.
A: Once a debt is discharged, the debtor will never have to repay it.

Q: Which of the following is a main difference between Chapter 7 and Chapter 13 bankruptcy cases?
- Chapter 13 requires a regular income and allows the debtor to keep his or her property.
- Chapter 13 is a liquidation case.
- Chapter 7 is for businesses and Chapter 13 is for individuals.
- Chapter 7 requires a regular income and allows the debtor to keep his or her property.
A: Chapter 13 requires a regular income and allows the debtor to keep his or her property.

Q: An increase in human capital usually leads to a higher income.
- True
- False
A: True

Q: Which of the following statements is true?
- The long-term consequences of bankruptcy are so minimal that filing a case is usually a good first option.
- A trustee is assigned to all bankruptcy cases just to contact creditors and stop collection actions.
- A bankruptcy can stay on a person’s credit report for up to 10 years, affecting many aspects of life.
- The main benefit of bankruptcy is that removing or reducing one’s debt makes it easier to get credit.
A: A bankruptcy can stay on a person’s credit report for up to 10 years, affecting many aspects of life.

Q: Which of the following statements is true?
- Banks and mortgage brokers never obtain credit reports for employees.
- One possible consequence of bankruptcy is being unable to get certain jobs.
- Government agencies that run security checks are less likely to order credit reports.
- Banks cannot reject your loan application because of your credit report or credit score.
A: One possible consequence of bankruptcy is being unable to get certain jobs.

Q: Filing for bankruptcy protection is a serious decision, and most people consult an experienced attorney.
- True
- False
A: True