Problems with credit

Credit problems usually happen quite suddenly.      

• True
• False

It is vital that you follow the 20/10 Rule when you take out a mortgage loan.

• True
• False

Debt settlement programs are typically free and can reduce your debt by as much as 90 percent.

• True
• False

Which of the following is the main advantage of Chapter 7 bankruptcy?      

• it is better for the debtor in terms of reestablishing credit
• it provides immediate debt relief 
• it is the easiest form of bankruptcy to qualify for
• debtors get to keep most of their property

. A legal process where property used as collateral is sold to pay off a debt is called        

• Garnishment
• Foreclosure
• bankruptcy
• defaulting

This occurs when creditors file a petition with a court asking the court to declare you bankrupt.   a.  repossession b.  foreclosure   c.  involuntary bankruptcy d.  voluntary bankruptcy

• Repossession
• Foreclosure
• involuntary
• voluntary

When you have insufficient income and assets to pay your debts, you are said to be   a.  liquidated. b.  indigent.   c.  unsecured. d.  insolvent.

• liquidated
• indigent
• unsecured
• insolvent

Which of the following is a reorganization form of bankruptcy for businesses?   a.  Chapter 11 bankruptcy b.  Chapter 13 bankruptcy   c.  voluntary bankruptcy d.  involuntary bankruptcy

• Chapter 11
• Chapter 13
• Voluntary
• involuntary

With this type of program, a company negotiates with your creditors on your behalf to reduce the amount of debt you owe.      

• debt consolidation
• debt management
• debt settlement
• debt counseling

To qualify for a debt consolidation loan, you must have some type of collateral that secures the payment of the debt.       

• True
• False