Chapter 9 Credit Problems and Laws

Which of the following are common reasons people file bankruptcy

• Excessive medical

  bills

• Small business failure

• Loss of job and too

  much debt

• all of these

What are the 3 common types of Bankruptcies?

• Chapter 1, Chapter 7, Chapter 13

• Chapter 1, Chapter 11,Chapter 13

• Chapter 7, Chapter 11, and Chapter 13

• Chapter 7, Chapter 9, Chapter 13

Someone who is filing for bankruptcy, but tries to transfer money or other assets to someone else in order to hide assets from the bankruptcy court is committing ____________.

• Chapter 13 Bankruptcy

• Chapter 11 bankruptcy

• Bankruptcy fraud

• Chapter 7 bankruptcy

Which of the following approaches to bankruptcy avoidance is likely to require the debtor to pay high fees for the services provided?

• credit counseling service

• debt settlement program

• debt management plan

• credit protection service

Which of the following laws limits a person’s liability to $50 after a credit card has been reported lost or stolen?

• Fair Credit Reporting Act

• Truth in Lending Act

• Credit CARD Act

• Fair Credit Billing Act

The Truth in Lending Act requires which of the following to be put in writing before a loan or credit agreement is signed?

• any service fees or other costs added to the price

• the annual percentage rate

• the total finance charge and method of computing it

• all of these

The legal process that allows a lender to take possession of a house because the borrower does not meet his or her mortgage obligations is called

• garnishment

• foreclosure

• bankruptcy

• discharge

When a car is pledged as collateral on a secured loan and the debtor fails to make payments, the creditor may __________ the car and sell it to pay the debt.

• Buy

• Repossess

• Discharge

• Garnish

A(n) __________ is a second mortgage or debt secured with the equity in your home.

• Equity Loan

• Personal Laon

• Credit Card

• Store Account

To help monitor your credit file, you may want to enroll in a(n) __________, which is a plan that provides credit monitoring for a fee.

• Credit litigation

• Credit Protection Service

• Credit Counseling

• Mediation