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LET’S PRACTICE
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11. Which of the following would not qualify as exempt property in a bankruptcy filing? a. investment portfolio, including stocks and bonds b. car c. pensions and retirement account d. clothes and appliances 12. Briefly explain in your own words why some types of property are exempt from liquidation in a bankruptcy. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 13. The Bankruptcy Abuse Prevention and Consumer Protection Act prevents individuals from filing for Chapter 7 bankruptcy more than once every ____. a. 10 years c. 5 years b. 8 years d. 3 years 14. Identify and describe two negative consequences of bankruptcy to the debtor. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 15. Jo co-signed a loan to help her sister open a bakery. Sadly, the bakery failed because Jo’s sister is staunchly anti-sugar. Jo’s sister filed bankruptcy and the debt was discharged. Is Jo still on the hook for repayment? Explain. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 16. For the last seven years Anthony has not filed his tax returns. The IRS found out and says he owes $10,000. He’s going to file Chapter 7 to get rid of that pesky IRS. Will Anthony be successful in discharging his tax debt in bankruptcy? Explain. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 367
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