LAS 261 - Week 1 Notes - Test 1

Question 1

It is not (1) to file for bankruptcy. You do not need an (2), but it is (3).

Answer 1

1. difficult
2. attorney
3. recommended

Question 2

Not all people who file for bankruptcy are (1). Most do so after a (2)–(3) are the most common reason. People who file for BK are usually (4) and (5).

Answer 2

1. deadbeats
2. life-changing event
3. Medical bills
4. couples
5. better educated

Question 3

All (1) need to be included in the bankruptcy filing, including (2)! It is an (3) deal.

Answer 3

1. creditors
2. relatives
3. all-or-nothing

Question 4

In bankruptcy trials, (1) are common and trials are typically (2) because BK is technical, can be boring and may be fraught with prejudice.

Answer 4

1. evidentiary hearings

2. bench trials

Question 5

Filing for bankruptcy is the (1) you can have on your credit report–it does not (2) debt. Other negatives remain for (3); bankruptcy remains for (4).

Answer 5

1. worst negative
2. erase (make creditors go away, etc.)
3. 7 years
4. 10 years

Question 6

(1) stops creditors from pursuing payment.

Answer 6

1. automatic stay

Question 7

You cannot get rid of (1) through bankruptcy.

Answer 7

1. back taxes

Question 8

You can file for Chapter 7 Bankruptcy once every (1)–the time counts from the date of (2).

Answer 8

1. 8 years

2. discharge

Question 9

The (1) will review all purchases made right before filing–if it appears you racked up debt right before on purpose, this will be touted as (2). Bankrupctcy judges (3) on it.

Answer 9

1. case trustee
2. fraud
3. comes down hard

Question 10

While bankruptcy is a (1), chances are good unless you are (2), or (3), that only (4) will know about it. There are too many other cases.

Answer 10

1. public legal proceeding
2. prominent
3. the media picks up your story
4. creditors

Question 11

Not all (1) are wiped out be Chapter 7 bankruptcy. (2), (3), (4) and (5) are examples of ones that still remain.

Answer 11

1. debts
2. child support
3. alimony
4. student debts
5. debts incurred as a result of fraud

Question 12

The debtor in bankruptcy does not lose (1). There are (2) and (3) in place for thing you want to keep.

Answer 12

1. everything
2. processes
3. procedures

Question 13

Bankruptcy debtors wil get credit again, but it will be from (1) who will charge a (2)

Answer 13

1. subprime lenders

2. high interest rate

Question 14

Spouses do not have to file (1)–however, they (2). Only (3) can be co-debtors.

Answer 14

1. together
2. should because the other will be liable for the debts
3. spouses