Bankruptcy Chapters

Question 1

What are the 4 numbers designating the four different chapters of bankruptcy in the United States that we care about?

Answer 1

7, 11, 12, and 13

Question 2

What are the only 2 bankruptcy chapters we care about?

Answer 2

7 and 13

Question 3

What does a Chapter 7 bankruptcy do?

Answer 3

A Chapter 7 bankruptcy lets you walk away from most debts

Question 4

What are the 4 debts that you can’t just walk away from in a Chapter 7?

Answer 4

1. student loans
2. accrued child support
3. criminal fines
4. tax debts that are less than 3 years old

Question 5

What are the 3 tests you need to pass in order to qualify to file a Chapter 7 bankruptcy?

Answer 5

1. Means test
2. have to live in the state
   3.

Question 6

How much of your debt do you have to pay in a Chapter 13?

Answer 6

You have to pay back at least part of your debts

Question 7

How long do you have to pay on a “payment plan” in a Chapter 13?

Answer 7

3 to 5 years

Question 8

What are the 2 reasons that allow you to have a 3 year payment plan?

Answer 8

1. You make less than the “median income” in your state

2. You can pay off all your debts, even the unsecured debts, in 3 years