Bankruptcy Test Review. True/False Bankruptcy stays on your credit report for 10 years and decreases...
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Transcript of Bankruptcy Test Review. True/False Bankruptcy stays on your credit report for 10 years and decreases...
Bankruptcy Test Review
True/FalseBankruptcy stays on your credit
report for 10 years and decreases your credit score.
TRUE
True/FalsePeople who file bankruptcy pay
lower interest rates because they have no debts.
FALSE
OK/Not OKYou should declare bankruptcy
when it becomes difficult to make your monthly payments.
NOT OK
OK/NOT OKYou should declare bankruptcy when your insurance company will not pay all of your medical
bills.
NOT OK
OK/NOT OKYou should declare bankruptcy
when you have no other options.
OK
GOOD/BADGetting consumer credit
counseling is a good option to bankruptcy.
GOOD
GOOD/BADTaking a home equity loan is a
good option to bankruptcy.
GOOD, but risky
GOOD/BADTaking out a debt consolidation
loan is a good option to bankruptcy.
GOOD, but may be more expensive in the long run.You must stop spending.
GOOD/BADIt is better to stop payment on all
bills rather than declare bankruptcy.
BAD
_____ is defined as being legally released from the obligations to
repay some or all debt in exchange for giving up some of
your assets.
Bankruptcy
True/FalseYou do not have to give up anything when declaring
bankruptcy.
False
True/FalseYou can never repair your credit
history after declaring bankruptcy.
False
What is a way to rebuild your credit history after declaring
bankruptcy?
Use Credit CautiouslyPay Your Bills on Time
People who file bankruptcy can get credit but will pay ____
interest rates until they rebuild their credit history.
HIGHER
What type of bankruptcy that reorganizes your personal debt
with a payment plan?
Chapter 13
One of the advantages of filing bankruptcy is that creditors are
required to:
Stop calling your about late payments
What should you do if you are having problems paying your
bills?
Get credit counseling to help resolve the problem and keep it
from happening again
When declaring bankruptcy, what is considered a crime and
has serious consequences?
Making False Statements
What are some of the major reasons for declaring
bankruptcy?
DivorceGambling
Failing to Pay Personal Income Tax
What is not a major reason for declaring bankruptcy?
Student Loans