Bankruptcy and Credit

A financial "fresh start" for an individual might be found through which of the following?

• Filing Chapter 1

• Filing Chapter 7

• Filing Chapter 17

• Filing Chapter 21

The person who owes money to someone else is the

• debtor

• creditor

• loser

• owebewon

Laws created to protect both debtors and creditors are called ___.

• Financial freedom laws

• Money tree laws

• Credit protection laws

• Lottery laws

You have not been able to pay the bank the payments you owe on your truck. Eventually, the bank will

• Make you file bankruptcy

• Call your mother

• Garnish your truck

• Repossess your truck

If you are employed by someone else and the court says you own money, part of your paycheck may be withheld to pay your debt. This is called ___.

• Garnishment of wages

• Repossession of money owed

• Partial bankruptcy

• Very embarrassing to you

If you make a major purchase such as a car or boat, the item purchased will likely be held as ____ to protect the bank's loan to you.

• Collagen

• Collateral

• Collision insurance

• Prisoner

Garnishment cannot exceed this percent of your weekly take-home pay.

• 10%

• 15%

• 25%

• 50%

This credit protection law requires creditors to tell borrowers the true costs and terms of credit (including interest rates & finance charges.)

• The Truth in Lending Law

• The Credit Card Truth Act

• The Debt Collection Practices Act

• The Fair Credit Reporting Act

This law gives us a right to see what is in our credit reports.

• The Truth in Lending Law

• The Consumer Credit Protection Act

• The Debt Collection Practices Act

• The Fair Credit Reporting Act

This law prohibits discrimination when lending money.

• The Equal Credit Opportunity Act

• The Consumer Credit Protection Act

• The Debt Collection Practices Act

• The Fair Credit Reporting Act