FAFSA and Bankruptcy Questions

When should you complete the FAFSA form?

• Only once during your college career

• Every semester

• Every academic year

• Only if you need a loan

Which of the following is NOT a type of financial aid you can receive through FAFSA?

• Grants

• Scholarships

• Work-study funds

• Credit cards

What is the primary purpose of the FAFSA?

• To apply for student loans only

• To determine eligibility for federal, state, and school financial aid

• To register for classes

• To apply for a job

Which of the following best describes a Chapter 7 bankruptcy?

• A) A debt repayment plan where creditors are paid over 3-5 years

• B) A liquidation process where non-exempt assets are sold to pay creditors

• C) A bankruptcy type available only to businesses

Which of the following debts is typically NOT discharged in a Chapter 7 bankruptcy?

• Credit card debt

• Medical bills

• Student loans

• Personal loans

Which of the following is a key difference between Chapter 7 and Chapter 13 bankruptcy?

• Chapter 7 involves the debtor paying off the debt through a monthly payment plan, while Chapter 13 involves liquidation of assets.

• Chapter 7 is for individuals and businesses, while Chapter 13 is only for individuals with regular income.

• Chapter 7 offers a longer repayment period than Chapter 13.

• Chapter 7 involves a fixed repayment schedule, while Chapter 13 does not have any payment requirements.

How long does a Chapter 13 bankruptcy typically remain on a debtor’s credit report?

• 5 years

• 7 years

• 10 years

• 15 years

Which type of debt is typically not discharged in bankruptcy?

• Credit card debt

• Medical bills

• Student loans

• Personal loans

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

• Chapter 7 is for businesses only, while Chapter 13 is for individuals only.

• Chapter 7 is for individuals and businesses, while Chapter 13 is only for individuals with regular income.

• Chapter 7 is for individuals with regular income, while Chapter 13 is for businesses only.

• Chapter 7 and Chapter 13 are for individuals only.

How long does a Chapter 7 bankruptcy remain on an individual's credit report?

• 5 years

• 7 years

• 10 years

• 15 years