Deck 3: Summary of Chapter 7 Versus Chapter 13

Question 1

If a debtor passes the Means Test, the debtor can proceed to file Chapter 13.

Answer 1

False

Question 2

Can a debtor pass the Means Test but still file for Chapter 13?

Answer 2

True

Question 3

The debtor is filing for bankruptcy by the end of the week but is currently behind one month on his car payments. The debtor should file _________

A) Chapter 7 if the debtor wishes to keep the car.
B) Chapter 13 if the debtor wishes to keep the car.

Answer 3

Chapter 13 if the debtor wishes to keep the car.

Question 4

The most common type of bankruptcy filed by consumers is ________

A) Chapter 7.
B) Chapter 13.

Question 5

When is a bankruptcy estate created?

Question 6

Briefly explain income used for purposes of the Means Test and for Schedule I.

Question 7

Provide two examples of why a debtor may file for Chapter 13.

Question 8

Briefly explain an exemption and provide an example.

Question 9

What is a bankruptcy estate?