HDFS 2483 --- CHAPTER 8

A debt collector can not do which of the following:

Use profane language Call you after 9:00 pm Call you at work if you ask them not to

What is the name of the loan clause that allows the bank to demand full repayment of the loan before it is due?

acceleration

If you cannot make a payment on a debt when due, contact the ______ at once to work out a modified payment plan.

bank

The creditor in a Chapter 13 bankruptcy proposes a plan to pay off debts from future earnings over a period of time.

false

When lenders suspend payments on a mortgage for a few months, it is called a ____

forbearance

When a lender forgives the balance of the loan during a foreclosure because they received the property, it is referred as what type of arrangement?

Deed-in-lieu of foreclosure

Which of the following are red-flags of financial problems:

- Not making minimum payments - Getting cash advances on credit cards - Borrowing money from family to make payments

A Chapter 13 bankruptcy plan allows to the owner to retain ownership of current assets if they repay the creditors over a specified period of time, usually ___ to ____ years.

3;5

Bankruptcy stays on your credit record for ___ years.

7 - 10

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

Certain taxes Fines Alimony Child support

Which are the two types of bankruptcy in the US for individuals?

Chapter 7 & 13

How can you maintain your credit rating during a foreclosure? Choose all that apply.

Conduct a short sale Give the property to the lender Allow someone else to take over the payments

The first step in managing credit card debt is to:

Contact the credit card co to renegotiate the interest rate

Bankruptcy is very serious and can do which of the following:

Keep you from getting a job Can become public record Be listed in the local newspaper

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

SS payments and unemployment compensation Equity in home Household appliances Equity in cars Clothing

The first step to get out of debt is:

Stop using credit cards

Which are steps to get out of debt

Stop using credit cards Use the envelope system Make payments on time

Which of the following are warning signs of debt problems.

- No emergency fund - You often are late on payments. - Decreasing net worth each month - Paying only minimum amount due on credit card

Which of the following are ways to be thrifty:

Don't buy convenience foods Delete bookmarked shopping sites from computer Take your lunch to work

The goal of the National Federation for Credit Counseling (NFCC) is to:

advise consumers about how to manage their debt

_____-settlement companies help renegotiate rates and payments for those having debt troubles.

debt

The trend in mortgage foreclosures has _____ over the last 5 years.

declined

One way to help you get out of debt is to use a(n) ____ system for budgeting.

envelope

Chapter 13 bankruptcy will not stop the foreclosure on your home.

false

True or false: It always makes sense to pay of the credit card with the highest interest first.

false

True or false: The cost per unit (CPU) is not a very good way of comparing product prices.

false

How much of your salary should you try to have in an emergency account?

three to six months

If you go bankrupt, you are required to get credit counseling.

true

True or false: Combining student loans can save up to 3% on interest rates.

true

The term used to describe the situation when a person legally declares his inability to pay his debts is called ____

bankruptcy

A _____ is an when a lender lowers the interest rate or loan balance.

cramdown

A temporary solution when you are at risk of foreclosure is _____ which allows you to make up payments you missed.

reinstatement

In a Chapter 7 bankruptcy the debtor must _____ their assets and distribute the proceeds to the creditors.

sell

If you sell a house for less than you owe on the mortgage and the lender considers the loan paid off you conducted a ____ ___.

short sale

True or false: Missing a payment by one day can dramatically increase your interest rate.

true