Chapter 6

Question 0

A legal process to get out of debt when you have failed financially (when you can no longer make all your required payments). The case is filed under one of the chapters of Title 11 of the United States Code (the Bankruptcy Code).

Answer 0

Bankruptcy

Question 1

An agency which collects the credit history of consumers so that creditors can make decisions about granting loans (TransUnion, Experian, and Equifax)

Answer 1

Credit Bureau

Question 2

A report showing your payment history.

Answer 2

Credit Report

Question 3

A chapter of the Bankruptcy Code that provides for liquidation (sell for cash) of the debtor’s assets in order to repay the creditors. Certain assets or aggregate value of assets of the debtor may be exempt (they don’t have to sell) based on state law.

Answer 3

Chapter 7 Bankruptcy

Question 4

The amount of money left over from your paycheck after all necessities, taxes, and expenses are paid.

Answer 4

Disposable Income

Question 5

Forbids collectors to deceive, abuse, or harass when collecting debts from people, protects you from unfair collectors. (passed in 1977)

Answer 5

Federal Fair Debt Collection Practices Act

Question 6

Requires a credit bureau to remove all inaccuracies within 30 days of notifications of such inaccuracies.

Answer 6

Federal Fair Credit Reporting Act

Question 7

A seller’s intentional deception (causes someone to believe something that isn’t true) of a buyer, which is illegal.

Answer 7

Fraud

Question 8

Debt repayment plan by which the borrower repays each lender a fair percentage of the total debt owed when one cannot make the minimum payments on one’s debt.

Answer 8

Pro Rata

Question 9

Pro Rata Gives

Answer 9

creditors a “fair share”

Question 10

“I love debt” score

Answer 10

FICO Score

Question 11

Using another person’s information to obtain goods or services.

Answer 11

Identity Theft

Question 12

Court order allowing a lender to take money directly from the debtor’s paycheck

Answer 12

Garnishment

Question 13

Trained salespeople to telemarketers

Answer 13

Collectors

Question 14

Food, shelter, clothing, transportation

Answer 14

Four Walls

Question 15

Fastest growing group of people filing for bankruptcy are ________

Answer 15

under 25

Question 16

You should check your credit score every ___________

Answer 16

Year

Question 17

The best way to deal with debt is with a plan (True or false)

Answer 17

True

Question 18

Account information is removed from your credit card “______ years” after the last activity

Answer 18

7 years

Question 19

May be legally removed from a credit report

Answer 19

Inaccurate information

Question 20

Identity theft is the fastest-growing “________” crime in North America today.

Answer 20

White Collar

Question 21

Place a fraud victim alert on your credit bureau report (stays on for 90 days without a police report)

Answer 21

Identity Theft: Step One

Question 22

Get a police report

Answer 22

Identity Theft: Step Two

Question 23

This is a theft. You owe nothing and should pay nothing.

Answer 23

Identity Theft: Step Three

Question 24

Contact the fraud victim division of each creditor and furnish documentation.

Answer 24

Identity Theft: Step Four

Question 25

Be persistent, this will take some time. Now you have a new hobby.

Answer 25

Identity Theft: Step Five

Question 26

______% of identities are stolen by people you know.

Answer 26

80%

Question 27

Collectors are taught in training to evoke strong ________

Answer 27

Emotion

Question 28

ALWAYS pay _______ first

Answer 28

Necessities

Question 29

(True or False) The Federal Fair Debt Collection Practices Act sets up restrictions that creditors must follow.

Answer 29

True

Question 30

Gives creditors a "fair share"

Answer 30

Pro Rata

Question 31

"I love debt" score

Answer 31

FICO score

Question 32

Using another person's information to obtain goods or services

Answer 32

Identify theft

Question 33

TransUnion

Answer 33

Credit bureau

Question 34

Court order allowing a lender to take money directly from the debtors paycheck

Answer 34

Garnishment

Question 35

Trained salespeople or telemarketers

Answer 35

Collectors

Question 36

Food, shelter, clothing, transportation

Answer 36

Four Walls

Question 37

True or False: | You should always pay the collectors first

Answer 37

False, you should always pay necessities first

Question 38

True or False: | The best way to deal with debt is with a plan.

Answer 38

True

Question 39

True or False: | The Federal Fair Debt Collection Practices Act allows creditors to call between 7 a.m. and 10 p.m.

Answer 39

False, the FFDCPA allows creditors to call between 8 a.m. and 9 p.m. your time.

Question 40

True or False: | If you are a victim of identity theft, you are only responsible for the first $250 of debt.

Answer 40

False, if you are a victim of identity theft, you are not responsible for any of the the debt.

Question 41

True or False: | You should check you credit report every year.

Answer 41

True

Question 42

Passed in 1977 to protect you from unfair collectors:

Answer 42

FFDCPA

Question 43

Which of the following I one of the Four Walls:

Answer 43

Mortgage payment

Question 44

It is a good idea to check your credit report:

Answer 44

Every year

Question 45

Which of the following tactics are collectors likely to use?

Answer 45

Lying, harassment & being friendly

Question 46

Which piece of information, if stolen, is not likely to lead to identity theft?

Answer 46

Phone number

Question 47

The pro rata payment includes which of the following elements:

Answer 47

Repayment of debt as soon as possible, using the Four Walls to set priorities, and giving a percentage of debt to each creditor.

Question 48

The fastest growing group of people filing for bankruptcy are

Answer 48

Under 25

Question 49

What is the best way to deal with collectors?

Answer 49

Have a plan

Question 50

Explain the steps to take if you fine an error on your credit report

Answer 50

1. Write a separate letter for each inaccuracy 2. Staple a copy or your credit report to each letter 3. Circle the account number

Question 51

List some precautions to take to help safeguard against identity theft.

Answer 51

Shred documents Don't carry around you Social Security Card Don't give passwords Don't buy things online at an unsafe place

Question 52

Describe some common tactics used by collectors. Why do these you use these?

Answer 52

Lie, intimidate, attack, fake names, call relatives, attack emotions

Question 53

Refute the myth, "I need to build my credit score."

Answer 53

Credit score is "I love debt score"