Debt and Bankruptcy

Debt can be avoided through which of the following? 

• Frivolous spending
• Investing in high risk opportunities 
•  Budgeting finances
• Employer benefits 

Chapter 7: Ordinary Bankruptcy can only be filed involuntarily. 

• True
• False

 Declaring bankruptcy is not a matter of public record. 

• True
• False

Good debt reduces your tax liability. 

• True
• False

What is a credit counselor?

• They help you set up a realistic budget and will give advice about how to stay within your budget

• They guide you through life and family issues

• They file your taxes, pay your bills, and keep up with all your payments for you

• They counsel you through bankruptcy and charge a high fee per hour

Answer explanation

If you get into a serious problem with credit, you can seek counseling from a private or government-sponsored counseling service

Who is debt adjustment for?

• Wealthy People who are in a good place with their credit

• People who own a small prospering business

• People with deep credit trouble

• Teenagers who care about money management

What are the Two Types of Debt Adjustment?

(Select 2 answers)

• debt-adjustment service plan

• debt manager

• debt fighinting plan

• debt consolidation loan

Repairing your credit consists of obtaining a:

(Hint: Three correct answers)

• checking for incorrect information

• credit report

• Buying more Items for yourself

• responding to disputes

What is Bankruptcy?

• A legal process that is the BEST option for you to take immediately when you fall into debt

• A legal process that relieves debtors of responsibility of paying their debts or protects them while they try to repay their debts

• A legal process that only businesses take part in

• A legal process that everyone eventually takes part in to get a better credit score

Answer explanation

Bankruptcy is a second chance with serious consequences

It should always be the last option

Which statement is true about Involuntary bankruptcy?

• The most common kind

• The debator volunteers themselves as bankrupt

• This doesn't happen very often because most creditors prefer to be paid in full over a period of time rather than settle only for a portion