Deck 5: The Bankruptcy Intake

Question 1

A non-filing spouse's income is excluded from Schedule I.

Answer 1

False

Question 2

A non-filing spouse's income is excluded from the Means Test?

Answer 2

False

Question 3

What is the difference between a non-filing spouse's income and a domestic partner's income for Schedule I and the Means Test?

Answer 3

Whether a spouse is filing or not, the spouse's income is included in Schedule I and the Means Test. While for a domestic partner, only household contributions are included in Schedule I.

Question 4

How does a separation affect bankruptcy?

Question 5

How could a pending divorce case affect bankruptcy?

Question 6

To confirm if the debtor can file in this district, the debtor must ______________.

A) have proof of employment in this current district.
B) reside in this district for at least thirty days.
C) confirm where he has resided during the last six months.
D) seek permission from the court to file in this district if he has resided here less than two years.

Question 7

Pete relocated from New Mexico to Florida in January 2020 because his employer expanded operations. However, by October of 2021, the plant was closed and relocated to Texas. Because Pete got married in June of 2021, he wants to stay in Florida, but since he's unemployed, he will need to file for Chapter 7. Pete will ___________.

A) file in Florida because he has resided there for more than 180 days.
B) file in New Mexico because he has lived in Florida less than 730 days. Because the hearing will likely be virtual, he won't have any issues appearing before the bankruptcy trustee.
C) use his wife's residency to qualify for domicile in Florida.
D) use his wife's residency to file in Florida, but only if she also files.

Question 8

Cary has to file for bankruptcy because she's unemployed but will be moving to Alabama because her husband was offered a higher-paying job. Three months ago, she paid off her car that is worth approximately $11,000. To protect the non-exempt equity in her vehicle, Cary should _____________.

A) transfer the vehicle to her husband.
B) wait two years to file to comply with the 730-day test.
C) wait six months to file to comply with domicile requirements.
D) research which state offers more favorable exemptions and file based on the 730-day test.

Question 9

In four months, Becky is retiring and relocating to Key West, Florida where she has a condo that she has used as a vacation home for more than a decade. She wants to file for bankruptcy in Florida because of the generous exemptions for homes. Becky should:

A) file for bankruptcy in Florida after residing in the state for more than four months.
B) reside in Florida at least two years before she files for bankruptcy to protect her Key West home.
C) file for Chapter 12 if she wants to protect the equity in her home.
D) file in 6 months or 180 days.
E) none of the above.

Question 10

A debtor's residency and domicile are the same for purposes of bankruptcy?

A) True
B) False
C) Residency is only applicable in Chapter 13 cases.
D) Domicile is only applicable in Chapter 7 cases.

Question 11

Describe the difference between residency and domicile. Give an example.

Question 12

What is the 730-day test?

Question 13

Exhausted after a double shift, the debtor fell asleep while driving home. This resulted in a car accident where the other party suffered serious injuries and substantial medical bills. The victim sued and obtained a judgment for $300,000. If the debtor files for bankruptcy, _____________.

A) he would eliminate the debt since the debt resulted from a negligent act.
B) he would eliminate other debts but not the judgment since there were serious injuries involved.
C) the judgment would not be discharged because the debtor should have filed for bankruptcy before the final court order.
D) the judgment will be eliminated if the bankruptcy was filed within one year of the accident.

Question 14

What is the difference between the 180 and 730 day rule?

Question 15

Dennis the debtor has been residing in Florida for five months. He relocated to Florida because of a job offer. Prior to that, he resided in Tennessee for thirty-six years. To file for bankruptcy in Florida, Dennis the debtor must:

A) Own a home in Florida.
B) Have resided in Florida at least 730 days.
C) Dennis the debtor can file for bankruptcy in Florida because has lived a majority of the last six months in Florida.
D) None of the above.

Question 16

Since John can't afford to pay child support or alimony due to his other financial obligations, he should proceed to file bankruptcy and eliminate the arrears and obligations.

Question 17

Kenny has to make his first child support payment in thirty days, so he has decided to file for bankruptcy. This results in ___________.

A) the automatic stay stopping the child support case since it's a state case and the federal court has jurisdiction.
B) stopping other cases not related to domestic support obligations.
C) not having to pay child support from the filing date through the date the discharge is received.
D) none of the above.

Question 18

Domestic support obligations are dischargeable in bankruptcy.

A) Only alimony is dischargeable in bankruptcy.
B) Only child support is dischargeable in bankruptcy.
C) Both alimony and child support may be discharged in bankruptcy if the debtor can prove he can't afford either one. However, this requires an evidentiary hearing.
D) Domestic support obligations are not dischargeable in bankruptcy.

Question 19

If the debtor's wages are going to be garnished due to a child support obligation, the debtor should file for bankruptcy to take advantage of the protections of the automatic stay.

A) True.
B) False.
C) Depends if the debtor is filing for Chapter 7 or Chapter 13.
D) Wages cannot be garnished because of child support obligations.

Question 20

What is a DSO?

Question 21

On March 1^st, Bobby was divorced. Per the divorce agreement, he owed $10,000 in child support arrears, and his monthly child support obligation is $700 per month. While the court order required Bobby to pay $50 towards the arrears monthly, he was paying $100. Bobby is ready to file for bankruptcy and did his best to eliminate the arrears, but as of October 31^st, he still owes $9,000. Can Bobby file Chapter 7 bankruptcy, assuming he passes the Means Test?

Question 22

If a debtor's Chapter 7 bankruptcy was dismissed, the debtor can refile for Chapter 7:

A) after eight years.
B) on the 181^st day after the dismissal.
C) once a case is dismissed, court permission is always required to refile.
D) none of the above.

Question 23

If a debtor received a discharge in a Chapter 7 bankruptcy on October 10, 2012, the debtor can refile for bankruptcy on:

A) October 11, 2018.
B) October 11, 2019.
C) October 11, 2020.
D) The debtor cannot refile for bankruptcy if a prior discharge was received.

Question 24

Debra had previously received a discharge in a Chapter 13 case. When can she file Chapter 13 again?

Question 25

How many times can a debtor file for Chapter 7 bankruptcy?

Question 26

The client is unsure when a prior bankruptcy was filed. What steps should you take to confirm the results of the original case?

Question 27

Less than three months ago, the debtor used his credit card to pay off his utility bills since his electricity and water were about to be shut off. The total amount was $579.89 since he was several months behind. This will result in ___________.

A) the bankruptcy being denied because of fraud under §523.
B) a 2004 examination.
C) mostly likely nothing under §523 because utility bills are necessities, not luxury items.
D) none of the above.