Chapter 19 - JF
Terms
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- 20/10 rule
- recommended by credit counslers usually to people who are beggining to use thier credit
- Debtor
- a person who owes money to others
- Bankruptcy
- a legal process that relieves debtors of thier responsibility of paying thier debts or protects them while they try to repay
- Unsecured Debt
- a loan that is not backed by pledged assets
- Involuntary Bankruptcy
- occeurs when creditors file a petition with the court, asking the court to declare you bankrupt
- Voluntary Bankruptcy
- the most common kinds, occurs when you file a petition with a federal court asking to be declared bankrupt
- Dishcharged Debts
- debts erased by the court during bankruptcy proceedings
- Chapter 11 Bankruptcy
- a reorganization form of bankruptcy for businesses that allows them to continue operating under court supervision as they repay thier restructed debts.
- Chapter 7 bankruptcy
- is a liquidation form of bankruptcy for individuals that wipes out most debts in exchange for giving more assets
- Exempted property
- the possessions that the bankrupt debtor is allowed to keep because they are considered necessary for survival
- Chapter 13 bankruptcy
- a reorganization form of bankruptcy for individuals that allows debtors to keep thier property and use thier income to pay a porportion of thier debts over three to five years
- Reaffirmation
- the agreement to repay discharged debts