1. © South-Western Educational Publishing Chapter 19 Problems with Credit Getting Unstuck Reconsidering Bankruptcy

2. GOALS © South-Western Educational Publishing Lesson 19.1 Getting Unstuck List and explain different methods for solving credit problems. Outline bankruptcy laws, including exempted items, types of income excluded, and bankruptcy options.

3. © South-Western Educational Publishing Solving Credit Problems The 20/10 rule Credit counseling Debt adjustment Credit repair Legal recourse

4. © South-Western Educational Publishing Bankruptcy Laws and Their Purpose Types of bankruptcy Legal advice Reaffirmation of debts

5. © South-Western Educational Publishing Types of Bankruptcy Involuntary bankruptcy Voluntary bankruptcy Chapter 7 bankruptcy Chapter 11 bankruptcy Chapter 13 bankruptcy

6. GOALS © South-Western Educational Publishing Lesson 19.2 Reconsidering Bankruptcy Discuss the major causes of bankruptcy. Describe the advantages and disadvantages of declaring bankruptcy.

7. © South-Western Educational Publishing Major Causes of Bankruptcy Business failure Emotional spending Failure to budget and plan Catastrophic injury or illness

8. © South-Western Educational Publishing Advantages and Disadvantages of Bankruptcy Advantages Debts are erased. Exempted assets are retained. Certain incomes are unaffected. The cost is small. Disadvantages Credit is damaged. Property is lost. Some obligations remain. Some debts can be reaffirmed. Co-signers must pay.