Economics Credit Vocabulary

the formal process that allows debtors and creditors to resolve the problem of the debtor’s financial shortcomings through a reorganization plan.

• Chapter 7 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 15 Bankruptcy

an individual status that through liquidation eliminates most types of debt and stays on a person’s credit report for ten years.

• Chapter 7 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 15 Bankruptcy

permits debtors with regular incomes to pay all or a portion of their

debts under the protection and supervision of the court.

• Chapter 7 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 15 Bankruptcy

Something that is owed that will decrease future earnings.

• Foreclosure

• Repossession

• Alimony

• Debt

taking collateral when a borrower fails to repay a loan.

• Foreclosure

• Repossession

• Alimony

• Debt

the forced sale of property.

• Foreclosure

• Repossession

• Alimony

• Debt

the court ordered periodic allowance given by the higher earner of two former spouses.

• Foreclosure

• Repossession

• Alimony

• Debt

a business that specializes in debt collection.

•  Credit Counseling Service

• Credit Fraud

• 20/10 Rule

• Collection Agency

an organization that provides debt and financial management advice and services to people with debt.

• Credit Counseling Service

• Credit Fraud

• 20/10 Rule

• Collection Agency

states that an individual should never borrow more than 20 percent of his or her annual take-home pay.

• Credit Fraud

• Credit Counseling Service

• 20/10 Rule

• Collection Agency