Chapter 7

The two main activities of the CCCS are:

helping families with debt problems by helping them manage debts teaching families how to avoid heavy debt burdens in the future

The major provisions of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009:

imits the issuer's ability to increase the interest rate in the first year set a consistent due date for each month state that a teaser rate must be good for at least six months

The rule of 78s formula favors ____.

lenders

The pros and cons of T&E credit cards, such as American Express, include:

no finance charge is incurred as full payment of the balance owed is due each month full payment is due each month annual fees are typically high

Family members may only charge interest they would have earned on the money if they had deposited it in a ______ account.

passbook

In Chapter 7 bankruptcy, a debtor is required to draw up a _____ listing his or her assets and liabilities.

petition

Which of the following are signs of possible debt problems?

using up savings having little in savings getting a credit card revoked borrowing money to pay old debts

If you are denied credit by a bank or credit union, you should question:

your ability to afford the higher rate charged by a loan company

Which of the following loans are offered by credit unions to consumers?

Installment loans Share draft loans Credit card loans

is said that the least expensive way to borrow is when you borrow on the value of a financial asset. Which of the following loans would meet that test?

Life insurance cash surrender value loan Certificate of deposit loan

The costs of Chapter 13 bankruptcy include

court costs, lawyer fees, and trustee fees

The three types of credit insurance are:

credit life credit accident and health credit property

The Rule of 78s

A mathematical formula to determine how much interest has been paid at any point in a loan term.

hich of the following obligations are not discharged in a Chapter 7 bankruptcy?

Child support Alimony Certain taxes Fines

Which of the following is generally considered to be expensive sources of loans?

Department stores Appliance companies Finance companies Bank credit cards

Which of the following items of income and value are protected under a Chapter 7 bankruptcy?

Equity in cars Equity in home Trade tools SS payments and unemployment compensation Household appliances

In a Chapter 13 bankruptcy, the debtor normally keeps _____ of the property.

all or most

The major provisions of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009:

state that a teaser rate must be good for at least six months set a consistent due date for each month limits the issuer's ability to increase the interest rate in the first year