2
QuizMultiple Choice

Lesson 3: Bankruptcy

Question 2 • [PERFIN] Personal Finance, Sem 2 (26-27)

Which of the following is not a true statement about filing bankruptcy?

Answer
A
Bankruptcy erases all of your debt.
B
It is possible to rebuild your credit after filing bankruptcy.
C
There are exemptions that allow you to keep essentials.
D
Bankruptcy stops aggressive action by creditors.

Explanation

Bankruptcy does not erase every kind of debt. For example, some student loans, child support obligations, and certain taxes may remain owed after a bankruptcy case. It is possible to rebuild credit, exemptions may protect essential property, and bankruptcy generally stops many creditor collection actions, so “Bankruptcy erases all of your debt” is the statement that is not true.

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