Ch 4 Managing Your Personal Finances - Terms
Terms in this set (17)
A plan to limit the use of credit to no more than 20 percent of your yearly take-home pay, with payments of no more than 10 percent of monthly take-home pay.
A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay.
A reorganization form of bankruptcy for businesses that allows them to continue operating under court supervision as they repay their restructured debts.
A reorganization form of bankruptcy for individuals that allows debtors to keep most of their property and use their income to pay a portion of their debts over three to five years.
A liquidation form of bankruptcy for individuals that wipes out most debts in exchange for giving up most assets.
A service to help consumers manage their debt load and credit more wisely.
Following an individual plan for using credit wisely.
Credit Payment Plan
A record of your debts and a strategy for paying them off.
The process of reestablishing a good credit rating.
A type of debt relief service in which a finance company loans you money to pay off your debt.
Debt Management Plan
A type of debt relief service in which you make a single monthly payment to a credit counseling organization that distributes the funds to creditors based on a payment schedule.
Debt Settlement Program
A type of debt relief service in which a company negotiates with your creditors on your behalf to reduce the amount of debt you owe.
Previous debts erased by the court during bankruptcy proceedings.
Assets considered necessary for survival that a bankrupt debtor is allowed to keep.
Bankruptcy that occurs when creditors file a petition with the court asking the court to declare the debtor bankrupt.
An agreement to pay debts that have been legally discharged.
Bankruptcy that occurs when a debtor files a petition with a federal court asking to be declared bankrupt.