Debt and Bankruptcy (Intro)

Debt is a sum of money someone owes you.

• True

• False

An estimated 75 percent of consumer debt comes from open-ended credit.

• True

• False

Good debt reduces your tax liability.

• True

• False

Debt revolves around which of the following?

• Open-ended credit

• Close-ended credit

• Both open- and close-ended credit

• Neither open- nor close-ended credit

Which of the following is an example of open-ended credit?

• House

• Debt consolidation

• Car loan

• Department cards

Chapter 7: Ordinary Bankruptcy can only be filed involuntarily

• True

• False

Chapter 11: Reorganization involves business organizations only.

• True

• False

Declaring bankruptcy is not a matter of public record.

• True

• False

Bankruptcy is classified into how many types?

• 3

• 4

• 5

• 10

Which bankruptcy classification is the desire to rebuild a debtor-creditor relationship?

• Chapter 7

• Chapter 11

• Chapter 12

• Chapter 13