Question

1. determine if each of the following statements is true or false.

a. filing for bankruptcy stays on your credit report for at least 7 years: _______
b. filing for bankruptcy will significantly decrease your credit score: _______
c. filing for bankruptcy is free: _______
d. chapter 7 bankruptcy allows you to keep more of your personal assets than chapter 13 bankruptcy: _______
e. filing for bankruptcy makes it easier for you to get a credit card in the short term: _______
f. filing for bankruptcy could impact your ability to get a job: _______

Explanation:

Part a:

Bankruptcy (Chapter 7) stays on credit reports for 10 years, Chapter 13 for 7 years. So "at least 7 years" is true as Chapter 13 is 7, Chapter 7 is more.

Part b:

Bankruptcy is a major negative event for credit, so it significantly lowers credit scores.

Part c:

Filing for bankruptcy has filing fees (e.g., Chapter 7 ~$338, Chapter 13 ~$313 in 2024), so it's not free.

Part d:

Chapter 13 is a repayment plan, allowing more asset retention; Chapter 7 liquidates non - exempt assets. So Chapter 7 does not allow keeping more assets than Chapter 13.

Part e:

Bankruptcy is a red flag for lenders, making short - term credit card approval harder, not easier.

Part f:

Some jobs (finance, government) check credit/bankruptcy history, so it can impact job prospects.

Answer:

a. TRUE
b. TRUE
c. FALSE
d. FALSE
e. FALSE
f. TRUE