Consumer Protection Laws

Question 1

Automatic Stays apply to Alimony or Child Support?

Answer 1

No

Question 2

Do automatic stays apply to Criminal suits?

Answer 2

No

Question 3

2 chapters of bankruptcy

Answer 3

Chapter 7 Chapter 13

Question 4

What does bankruptcy stop?

Answer 4

Stops foreclosures, property repossessions, sales of propert

Question 5

State exemption laws

Answer 5

Allows the debtor to keep certain property

Question 6

Examples of exempted property

Answer 6

Portion of home equity
Clothes
Household items
Furnishings and appliances
Cars of limited value
Tools used in business
Jewelry worth less than $1875
pensions and public benefits
SS, welfare, unemployment comp accumulated in a bank account

Question 7

Non exempt property that must be given up in Bankruptcy

Answer 7

cash, bank accts, stocks, bonds, other investments
2nd homes/vacation homes
2nd cars or trucks
Stamps, coins, other collections
family heirlooms

Question 8

State vs Federal bankruptcy exemptions

Answer 8

States can opt out of federal exemptions
Some ALLOW YOU TO CHOOSE which exemption list you want state or fed

Question 9

Chapter 7

Answer 9

-eliminates debt by selling personal property to repay creditors
-monthly income avgd over 6 months prior to filing
-income must be less or equal to states median
-if exceeds median a means test is applied

Question 10

Means test

Answer 10

determines if enough disposable income to repay at least a portion of unsecured debt over a 5 year period

Question 11

When does chapter 13 apply

Answer 11

If debtors have more than a specified amount in DISPOSABLE INCOME

Question 12

Chapter 13

Answer 12

allows debtors to keep all personal assets, but obligated to repay debt in full over a period of time

Question 13

What happens at end of bankruptcy

Answer 13

Once creditors are repaid a discharge is issued

Question 14

Requirement prior to receive discharge from bankruptcy

Answer 14

Complete a personal financial management course

Question 15

How long does bankruptcy stay on credit report?

Answer 15

10 years

Question 16

What happens if you get behind on bankruptcy payments

Answer 16

Debtor can amend the repayment plan

Question 17

What income factors into bankruptcy repayments?

Answer 17

Wages, rental income, benefit payments

Question 18

Chapter 13 thresholds based on what type of debt

Answer 18

Secured - mortgage or car loans
Unsecured - credit card debt
Both under certain thresholds that adjust for inflation

Question 19

Chapter 13 thresholds adjusted for inflation how often

Answer 19

every 3 years

Question 20

Chapter 7 debts discharged how many days after assets are distributed to creditors?

Answer 20

115 days

Question 21

Fair Credit Reporting Act

Answer 21

-Everyone can request free credit report 1x a year
-can challenge incorrect info
-can sue agency if they dont correct

Question 22

If employers want to review your credit what do they need?

Answer 22

your written permission

Question 23

Truth in Lending act

Answer 23

• lenders must disclose the TRUE COST of consumer credit, explaining all charges, terms and conditions in plain english
• think “truth”

Question 24

Truth in lending right of recission

Answer 24

3 days in any loan agreement where home used for collateral

Question 25

Truth in lending credit card provisions

Answer 25

-cant be liable for more than $50 per card -companies cant send unauthorized cards

Question 26

Fair Credit Billing Act

Answer 26

-procedures for correcting billing errors -allows consumers to withhold payment on defective items -limits time some info can be kept in a credit card file -think “billing”

Question 27

equal credit opportunity act

Answer 27

-cannot discriminate - cant discriminate against someone on public assistance - written explanation of any adverse actions taken

Question 28

Would you have to give up a family heirloom or stamps/coin collection in bankruptcy?

Answer 28

Yes. These are not excluded

Question 29

Jewelry exclusion - what can you keep in bankruptcy?

Answer 29

You can keep jewelry worth less than $1875

Question 30

How do you pay the debt under chapter 7?

Answer 30

You sell property

Question 31

Repayment plan

Answer 31

An installment plan to repay creditors an amount they would have received under chapter 7, or more

Question 32

Fair debt collection act

Answer 32

prohibits unfair practices by DEBT COLLECTORS

Question 33

Electric Fund Transfer Act

Answer 33

atm card is lost or stolen - $50 if you notify within 2 biz days, $500 if notified within 3-59 days

Question 34

Fair credit and charge disclosure act

Answer 34

co’s must disclose FEES, TERMS, INTEREST RATES on cards

Question 35

Graeme Lesh Bliley Financial Modernization act

Answer 35

safeguards privacy of PERSONAL INFO held by bank must send privacy notice you can opt out of having info shared with 3rd parties

Question 36

What to do if identity is stolen

Answer 36

file complaint with FTC and police report to extend fraud alert protection for 7 YEARS

Question 37

Is alimony a dischargeable debt in bankruptcy?

Answer 37

No