Personal Bankruptcy: Law & Types

Instructions:

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question 1 of 3

Anne would like to file bankruptcy because she owes around $100,000 in unsecured credit card bills she cannot pay. She is a single mother and has very few assets. She has a regular salary but makes only minimum wage. What type of bankruptcy is BEST for Anne?

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1. Joseph's family owns several assets, including three cars and two houses. Between Joseph and his wife, the family makes an income of approximately $300,000, which is more than the median income in their state. Their overall debt is almost $1 million, with more than half of that in unsecured debt like credit cards and medical bills. What type of bankruptcy is BEST for Joseph?

2. Jillian wants to keep all of her assets, though the bank is threatening foreclosure on her house. She owes $200,000 on her house and another $50,000 in unsecured debt. She has a regular salary of almost $40,000 a year. What type of bankruptcy is BEST for Jillian?

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About This Quiz & Worksheet

These assessment tools will test your knowledge of some basic aspects of the U.S. Bankruptcy Code. The quiz will assess your knowledge of the two types of personal bankruptcy and the rights and responsibilities of the debtor in the bankruptcy process.

Quiz & Worksheet Goals

This quiz and worksheet combo will test you on:

  • Qualifications for both types of personal bankruptcy
  • Types of debts that must be repaid even in bankruptcy
  • Assets that a debtor is allowed to keep in bankruptcy

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related bankruptcy lesson
  • Making connections - use understanding of the concept of personal bankruptcy in different contexts
  • Distinguishing differences - compare and contrast topics from the lesson, such as Chapter 7 bankruptcy and Chapter 13 bankruptcy
  • Information recall - access the knowledge you've gained regarding personal bankruptcy

Additional Learning

To learn more about personal bankruptcy, review the lesson, Personal Bankruptcy: Laws & Types. The lesson contains the following objectives:

  • Understand the benefits of bankruptcy to both the debtor and creditor
  • Describe the two types of bankruptcy meant to aid individuals
  • Define trustee, liquidation, and priority as they relate to the bankruptcy process
  • Distinguish between secured debt and unsecured debt
  • Determine which type of personal bankruptcy allows for repayment and which type requires liquidation
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