PF - Ch. 10 Review (bankruptcy)

The ________ is a plan to limit the use of credit to no ore than 20% of your yearly take-home pay, and payments of no more than 10% of monthly take home pay.

• credit rule

• common sense rule

• golden rule

• 20/10 rule

This is a legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay.

• credit counseling

• debt adjustment

• luck

• bankruptcy

This form of bankruptcy is commonly called straight bankruptcy.

• Chapter 13

• Chapter 6

• Chapter 11

• Chapter 7

Chapter ____ bankruptcy is a liquidation form of bankruptcy for individuals.

• 7

• 11

• 2

• 13

Chapter ___ is a reorganization (payment plan) form of bankruptcy for individuals.

• 13

• 8

• 7

• 11

Chapter ___ bankruptcy is also known as the payment plan.

• 11

• 8

• 7

• 13

Chapter ___ wipes out most debts in exchange for giving up most assets.

• 8

• 13

• 11

• 7

An advantage of Ch. 7 bankruptcy is

• immediate debt relief

• you only make a few payments

• you can keep all of your assets

• your credit is not harmed

Ch. ______ bankruptcy is easier to qualify for as an individual.

• 6

• 7

• 11

• 13

Under Ch. ____ bankruptcy, the debtor keeps most of their property and use their income to pay a portion of their debts over 3 - 5 years.

• 11

• 13

• 8

• 7