Personal Finance chapter 10

Exercising good _____ means following an individual plan for using credit wisely. credit management
with _______, a finance company loans you money to pay off your debt debt consolidation
_________ services will help you develop a personalized budget plan credit counseling
If a person agrees to pay back a debt after it has been discharged by bankruptcy, the agreement is called ___. reaffirmation
with ______ bankruptcy, the debtor works outs court-enforced repayment plan whereby he or she makes a single monthly payment chapter 13
________, often called straight bankruptcy, allows some assets that are considered necessary for survival to be retained chapter 7
________ includes assets that a debtor is allowed to keep after bankruptcy because they are considered necessary for survival exempted property
________ occurs when a debtor files a petition with the court asking to be declared bankrupt voluntary bankruptcy
__________ occurs when creditors file a petition with the court asking that a debtor be declared bankrupt involuntary bankruptcy
__________ is a legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay bankruptcy
the _________ suggests that consumers limit the use of credit to no more than 20 percent of yearly take-home pay, with payments of no more than 10 percent of monthly take-home pay 20/10 rule
_______ refers to debt that does not have to be paid discharge debt
a __________ is a cash advance from your next payroll check payday loan
_________ is a form of bankruptcy for businesses that attempts to reorganize the debt structure rather than liquidate the business chapter 11
_________ is the process of reestablishing a good credit rating credit repair
credit problems often arise after months and years of poor planning true
the 20/10 rule suggests that you limit the use of credit to no more than 20 percent of your yearly gross pay, with payments of no more than 10 percent of your monthly gross pay false
a credit repair plan is a record of your debts and a strategy for repaying them off false
credit counseling services are typically free true
to qualify for a debt consolidation loan, you must have some type of collateral that secures the payment of the debt true
when you declare bankruptcy, you are said to be insolvent true
when you declare bankruptcy, all of your debts are erased and you get a fresh start without carrying forward previous obligations false
discharged debts are debts that a person declaring bankruptcy no longer has to pay true
chapter 7 is a liquidation form of bankruptcy that wipes out most debts in exchange for giving up most assets true
the purpose of chapter 11 bankruptcy is to liquidate the company and pay off its creditors false
involuntary bankruptcy is the most common kind of bankruptcy false
in many cases, persons declaring bankruptcy must give up most of their property to be sold to pay debts true
income taxes, child support, and alimony are examples of debts that are not discharged by bankruptcy true
if you file for chapter 7 bankruptcy, any cosigners you have are no longer obligated to repay the loans they cosigned false
it is a good idea to get legal advice when considering filing for bankruptcy true
which of the following is commonly known as straight bankruptcy chapter 7 bankruptcy
the 20/10 rule does not apply to mortgage loans for housing
If you file for chapter 13 bankruptcy, the judgment remains on your credit record for _________ years seven
when a debtor has reaffirmed a debt after bankruptcy judgment, he or she has ______ days to change his or her mind about promising to repay 60
to repair a poor credit rating, you can challenge incorrect information
which of the following debts is not discharged by bankruptcy student loans
the biggest cause of bankruptcy is medical expenses
under _________, debtors may keep most of their property but must submit a payment plan to the court reorganization
credit problems can arise from emergenciesimpulse buyingcareless budgeting
when designing a credit payment plan, accounts with _____________ should be first priority highest interest rate
to be insolvent means that you are unable to pay your bills
which of the following is one of the goals of bankruptcy laws in the United States to give fair treatment to creditors competing for debtors’ assets
when a creditor asks the court to declare a debtor bankrupt, this action is known as involuntary bankruptcy
which of the following is a debt that would be discharged by bankruptcy loan payment
under _________, the court sells the debtor’s assets and uses the proceeds to pay the debts liquidation
which of the following forms of bankruptcy is used for business chapter 11

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