Chapter 19 PF
Terms
undefined, object
copy deck
- Your total borrowing should not exceed 20 percent of your yearly take home pay, and you should not take on monethly payments that total more than 10 percent of your monthly take-home pay.
- 20/10 Rule
- a person who owes money to others
- Debtor
- a legal process that relives debtors of the responsibility of paying their debts or protects them while they try to repay it.
- Bankruptcy
- a loan that is not backed by pledged assests.
- Unsecured Debt
- occurs when creditors file a petition with the court, asking the court to declare you, the debtor, bankrupt.
- Involuntary Bankruptcy
- most common kind, occurs when you file a petition with a federal court asking to be declared bankruptcy.
- Voluntary Bankruptcy
- debts erased by the court durng bankruptcy proceedings.
- Discharged Debts
- a reorganization form of bankruptcy for businesses that allows them to continue operating under court supervision as they repay their restructed debts.
- Chapter 11 bankruptcy
- a liquid ation form of bankruptcy for individuals that wipes out most debts in exchange for giving up most assests.
- Chapter 7 bankruptcy
- the possessions that the bankrupt debtor is allowed to keep because they are considered neccessary for survival.
- Exempted property