Directions: this project will be worth 20 points (10 points + 10 points extra credit). Complete your answers on this paper. Highlight your answers in bold to differentiate them from the questions. Save your project in Word or as an RTF (Rich Text Format) and then upload this assignment to the drop box. In order to do this assignment you must watch the bankruptcy video at http://www.flmb.uscourts.gov/videos/bkbasicsvideo.htm
If you have trouble loading this video, type (cut and paste) this into your address bar: http://www.uscourts.gov/video/bankruptcybasics/bankruptcyBasics.cfm
from there click on the bankruptcy guided video box to load the video that way. As you are watching the video answer the following questions:
1. What is bankruptcy? (1 point)
Legal process by which you can deal with debts when you can no longer pay them.
2. Can creditors try to collect debts from the debtor after the debtor files bankruptcy? (1 point) No
3. What are the three main types of cases that individuals may file in bankruptcy? (3 points) Chapter 7 (liquidating), 11 (Reorganization), 13(Home saving/car saving)
4. List a debt that cannot be discharged in bankruptcy? (1 point) Debts incurred through fraud, child support or alimony cannot be discharged, most student loans, some federal income taxes, all employer withholding taxes.
5. Give two (2) examples of what would be considered exempt property. (2 points) A portion of the equity in the debtor’s home and car, and some or all the “tools of the trade” used by the debtor.
6. Do you have to go through a ‘credit briefing session’ provided by a credit counseling agency before you can file bankruptcy? Yes/No (1 point) Yes.
7. Do you, as an individual, need a lawyer to file bankruptcy? What are three (3) reasons why you may want to consider getting a lawyer? (5 points) You do not need a lawyer, but they can make it easier and can explain...