5
QuizMultiple Choice

Bankruptcy — Quiz

Question 5 • Personal Finance

Which steps should be taken to get your finances in order and avoid filing for bankruptcy?

Answer
A
Take out loans to cover immediate needs and repay it over time.
B
Seek credit counseling to develop a customized debt management plan.
C
Invest all your savings in the stock exchange for quick returns.
D
Maximize your credit card usage to spread out your payments.

Explanation

Credit counseling can help you review your income, expenses, and debts, then create a realistic plan to manage repayments. This customized debt management plan may help you regain control of your finances and avoid bankruptcy. Taking on more loans or maximizing credit card use can increase debt, while investing all your savings in stocks risks losing money needed for essentials.

AI-written and checked against the verified answer.

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