Question

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All of the following are true about Chapter 7 bankruptcy except that _____.

Question 2 options:

it is the most common form of bankruptcy for individuals

it is also known as liquidation

it can wipe out certain debts within several months, but a court-appointed trustee can sell your nonexempt property to pay your creditors

it allows you to keep your stuff and get on a more affordable repayment plan with your creditors

Question 3 (1 point)

 

 Saved

One of the few advantages about declaring bankruptcy include _____.

Question 3 options:

requiring the debtor to sell off all assets, including cars, real estate, and other valuable goods

having years of bad credit

making it very difficult to get new loans

allowing the debtor to discharge debt when ordinary payments are not possible

Answer 1

Question 2 — Except: "it allows you to keep your stuff and get on a more affordable repayment plan with your creditors."
Reason: That describes Chapter 13 (repayment plan); Chapter 7 is liquidation.

Question 3 — Advantage: "allowing the debtor to discharge debt when ordinary payments are not possible."
Reason: Discharge of qualifying debts is a primary benefit of bankruptcy.