Question

the ruiz family filed for chapter 13 bankruptcy. mr. ruiz is employed and makes just enough money to pay the family’s living expenses. mrs. ruiz found a part - time job on the weekends. they have three minor children living at home. what impact will this family face after filing for bankruptcy? the ruiz family will be legally prevented from seeking new employment. bankruptcy will immediately erase the family’s pre - existing credit history. mrs. ruiz’s part - time job will cause the bankruptcy filing to be voided. mr. and mrs. ruiz might face difficulties in getting new credit or loans.

Explanation:

• Analyzing the first option: There's no legal rule that prevents bankruptcy filers from seeking new employment, so this is incorrect.
• Analyzing the second option: Bankruptcy doesn't erase credit history immediately; it stays on record for a period (e.g., Chapter 13 for 7 years in some cases), so this is wrong.
• Analyzing the third option: A part - time job doesn't void a Chapter 13 bankruptcy filing (Chapter 13 is for those with income to repay debts), so this is incorrect.
• Analyzing the fourth option: After bankruptcy, especially Chapter 13, it's common for filers to face difficulties in obtaining new credit or loans as lenders view them as higher - risk borrowers.

Answer:

D. Mr. and Mrs. Ruiz might face difficulties in getting new credit or loans.