Question 1

Since retirement accounts are exempt, deductions from paystubs for a pension have no effect on a bankruptcy filing.

Accepted Answer

A) True 
 B)False  False

Question 2

During the consultation, it becomes obvious that the debtor's bankruptcy needs to be filed quickly to avoid a garnishment on Friday of next week. When asked if the debtor has used his credit cards recently, he states that he spent $644 on groceries in the last two weeks. How would this affect the bankruptcy?

Accepted Answer

Under §523, groceries would be considered "goods and services reasonably necessary for the support or maintenance of the debtor, or a dependent of the debtor." Also, the amount spent was beow the $725 threshold.

Question 3

By law, how many times a year are you allowed to obtain your credit report free of charge?

Accepted Answer

A)   every twelve months.
B)   twice a year.
C)   depends on the credit service.
D)   none of the above. A

Question 4

Fearful of a stock market crash, Laila withdrew $10,000 from her IRA and placed it in her checking account. After a few months where Laila realized there was no issues with the stock market, she redeposited $5,000 in her IRA account and transferred the remaining $5,000 to her savings account in case of an emergency. What issues, if any, exist if Laila files soon for bankruptcy?

Accepted Answer

The answer of Fearful of a stock market crash, Laila...

Question 5

Charitable donations up to ________ are permitted under §548.

Accepted Answer

A)   ten percent
B)   fifteen percent
C)   twenty percent
D)   five hundred dollars per month if the client is below the state median income, and seven hundred if above.

Question 6

The debtor purchased an $800 television two months before filing bankruptcy. This may violate §__________.

Accepted Answer

A)   521.
B)   522.
C)   523.
D)   524.

Question 7

The major credit reporting bureaus are:

Accepted Answer

A)   Equifax
B)   Transunion
C)   Experian.
D)   all of the above.

Question 8

What limits are imposed on cash advances under §523?

Accepted Answer

The answer of What limits are imposed on cash advances...

Question 9

If a laptop is considered a luxury good under §523, what is the maximum value allowable, and within what timeframe?

Accepted Answer

The answer of If a laptop is considered a luxury...

Question 10

Since the client listed a lawsuit in the intake, what issues should you address with the client?

Accepted Answer

The answer of Since the client listed a lawsuit in...

Question 11

The debtor had a cash advance of $1,200 approximately six months ago, and the funds were used to catch up with the rent. This automatically violates §523.

Accepted Answer

A) True 
 B)False

Question 12

To determine when a credit card was opened, the best way to obtain that information is by:

Accepted Answer

A)   asking the client directly.
B)   the client's credit report.
C)   calling the creditor.
D)   none of the above.

Question 13

If the client has provided credit reports and recent credit card statements, explain why the client should still provide the List of Creditors.

Accepted Answer

The answer of If the client has provided credit reports...

Question 14

Clients should provide the following to obtain creditor information:

Accepted Answer

A)   credit reports.
B)   List of Creditors
C)   statements and collection letters.
D)   all of the above.

Exam 8: Liabilities, and Required Documents