Debt

Question 1

Debt

Answer 1

Owing Money, Money that you owe

Question 2

Bankruptcy

Answer 2

A Process where a person or business has debt and the Courts help them with a plan to get out of debt

Question 3

Chapter 7

Answer 3

Part of the Bankruptcy Law that allows for “Liquidation”.

Liquidation - Selling Items to get money to pay off debt

Question 4

Chapter 11

Answer 4

Part of Bankruptcy Law that allows businesses to keep running while working on a plan to pay off the debts through the courts

Question 5

Default

Answer 5

Not paying back a loan

Question 6

Lein

Answer 6

When your property ( something of yours worth $) is claimed until the debt is paid off.

A Lein may be put on your house if you do not pay off a bank loan. This means the bank says “ Your house is going to be ours if you don’t pay back this debt”

Question 7

FICO Score

Answer 7

A score that is given to borrowers that scores them on their history of paying off debts.

Scores Range from 300-850

What the numbers mean: 
300-579: Poor.
580-669: Fair.
670-739: Good.
740-799: Very good.
800-850: Excellent.

Your score changes each month as you pay off/ or don’t pay off debts.

Question 8

Repossession

Answer 8

When the lender takes property (Something you own worth $$) because you didn’t pay off your debt.

If you do not pay your car payment, the bank may come and repossess your car.

Question 9

Bounced Check

Answer 9

When you write a check but don’t have enough money in the bank to cover it.

Also called “bad check”

If you bounce a check, you may have to pay a fee from the bank and/or the business you wrote the check to