Cwmc Module 3: Bankruptcy Competency Test

8 Questions | Total Attempts: 281

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Module Quizzes & Trivia

This quiz is part of LFE Institute’s CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Bankruptcy Module (Module 3) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you’ve successfully completed this test and are ready to begin the next Module. Correct answers required for passing grade: 7/8


Questions and Answers
  • 1. 
    Which of the following statements are false? (check all that apply)
    • A. 

      Attorneys are required to provide bankruptcy services at no charge

    • B. 

      Bankruptcy records stay on your credit history for 7 years

    • C. 

      It will be impossible to obtain a mortgage for 10 years after filing bankruptcy

    • D. 

      Bankruptcy is never a good solution for eliminating debts

  • 2. 
    Bankruptcy will generally eliminate which one of the following debts?
    • A. 

      School loans

    • B. 

      Credit card debts

    • C. 

      Back taxes owed

    • D. 

      Child support

    • E. 

      None of the above will be eliminated through bankruptcy

  • 3. 
    Before filing for bankruptcy, employees should: (check all that apply)
    • A. 

      Have some cash on hand and learn the total costs of credit counseling, attorney’s fees, and court costs

    • B. 

      File a reaffirmation agreement to agree to pay the balance on a credit card with a low outstanding balance to help establish credit after filing

    • C. 

      Make sure that their job will not be affected if they file bankruptcy

    • D. 

      Consider whether the debts that are causing the problems will be eliminated through bankruptcy

    • E. 

      Select which car they want to exclude from bankruptcy (some states will only let filers keep one car)

  • 4. 
    Employees who have recently filed bankruptcy will pay more for all of the following except:
    • A. 

      Auto and home insurance

    • B. 

      Mortgage interest

    • C. 

      Groceries

    • D. 

      Car loans

    • E. 

      Credit card interest

  • 5. 
    In regards to the employer, which of the following is NOT likely to happen when an employee files bankruptcy?
    • A. 

      Employees are distracted on the job, which increases Presenteeism costs

    • B. 

      More paperwork for the Human Resource department

    • C. 

      Poor employee morale

    • D. 

      Employees take more time off the job to appear in court

    • E. 

      Employees are more productive

  • 6. 
    To avoid bankruptcy, employees can: (check all that apply)
    • A. 

      Negotiate with lenders for lower payments or interest rates

    • B. 

      Ask for a deferment on school loan payments

    • C. 

      Work out a payment "catch up" plan

  • 7. 
    Employers can help employees avoid bankruptcy by: (check all that apply)
    • A. 

      Providing preventative education through LFE's "Managing Your Money!" workshop

    • B. 

      Helping employees make smart financial decisions throughout the year by providing LFE's weekly "Money Minute!"

    • C. 

      Making Money Coaching available to employees

    • D. 

      Helping employees avoid making costly mistakes by combining Money Coaching with LFE's "Money Minute!"

  • 8. 
    Which one of the following will NOT help rebuild credit after filing bankruptcy?
    • A. 

      Paying off debts not relieved through bankruptcy

    • B. 

      Applying for 3 store credit cards within the first six months

    • C. 

      Obtaining a Savings Passbook Loan

    • D. 

      Choosing to pay off at least one credit card even though all credit cards were included in the bankruptcy filing