Bankruptcy The truth about Chapter 7 & Chapter 13.

Slides:



Advertisements
Similar presentations
Using Credit Chapter 25, pgs
Advertisements

Chapter 9-Section 2 Bankruptcy Choices. Bankruptcy  A legal procedure to relieve a person of excessive debt.  Voluntary bankruptcy-the individual asks.
Bankruptcy. What is Bankruptcy? Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh start by canceling.
Problems with Credit Unit 3. Did You Know?  Most lottery winners spend all of their winnings and are broke within 5 years.  40% of all personal bankruptcies.
NAVIGATING THROUGH THE BANKRUPTCY MAZE Presented by: South Orange County Bankruptcy.
Introduction to Business & marketing
Chapter 7: Planned Borrowing. Objectives Discuss the elements of the planned use of credit. Establish your own debt limit. Understand the language of.
Law Offices of David C. Winton/(415) Bankruptcy and Mortgage Deficiency Basics Chapter 7 and Chapter.
Why You Don’t Want to Go into Bankruptcy CARE PROGRAM.
Bankruptcy – Chapter 7 What you need to know if you are thinking of filing a Chapter 7 Bankruptcy.
Copyright, 1996 © Dale Carnegie & Associates, Inc. BANKRUPTCY MINI-LESSON INDIANA DEPARTMENT OF FINANCIAL INSTITUTIONS CONSUMER EDUCATION.
BANKRUPTCY. COLORADO FILINGS TREASURERER’S RESPONSIBILITIES.
Going Broke Independent Living. What are some issues that lead individuals and families to go “broke”?  1. Medical Expenses  2. Unemployment/job loss.
Your rights Credit. Your rights Truth in Lending Act (1968) Ensures consumers are fully informed about cost and conditions of borrowing. Fair Credit Reporting.
Legal Aid of Nebraska Lea Wroblewski (402)
Copyright, 1996 © Dale Carnegie & Associates, Inc. GETTING OUT OF DEBT MINI-LESSON INDIANA DEPARTMENT OF FINANCIAL INSTITUTIONS CONSUMER EDUCATION.
CALM.  Able to buy needed items now and pay later.  Don’t have to carry cash  Creates a record of purchases  More convenient than writing cheques.
Credit and Its Use.
Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.
Measuring Your Financial Health and Making a Plan
PART 2: MANAGING YOUR MONEY Chapter 6 Using Credit Cards: The Role of Open Credit.
© Oklahoma State Department of Education. All rights reserved.1 Personal Bankruptcy Standard 13.1 Bankruptcy.
Loans and Interest Financial Capability. Loans and Interest Follow up questions for “Borrow Cards” game Follow up questions for “Borrow Cards” game What.
Managing Debt. The PICPA The Pennsylvania Institute of Certified Public Accountants (PICPA) is a professional association of more than 22,000 members.
Credit Chapter 25.
Why You Don’t Want to Go into Bankruptcy CARE PROGRAM.
Bankruptcy. What is Bankruptcy?  Bankruptcy is a federal court process that can help you eliminate legal responsibility for many of your debts or repay.
PART 2: MANAGING YOUR MONEY Chapter 7 Using Consumer Loans: The Role of Planned Borrowing.
The Importance of a Good Credit Score and How to Read a Credit Report
Using Credit. Terms to know Credit Creditor Revolving Charge Account Installment Account Vehicle leasing Cash loan Collateral Cosigner Home equity loan.
Manage Debts It is more important than savings/investments!
Stock Market Analysis and Personal Finance Mr. Bernstein Personal Financial Statement, pp February 19, 2015.
Law in American Society Ms. Gikas.  Credit: buying goods or services or borrowing money in exchange for a promise to pay in the future  Creditors: people.
Chapter 19 Problems with Credit.
Copyright, 1996 © Dale Carnegie & Associates, Inc. GETTING OUT OF DEBT MINI-LESSON INDIANA DEPARTMENT OF FINANCIAL INSTITUTIONS CONSUMER EDUCATION.
Using credit is a way of life. People use credit online and for everyday purposes. Some do it so they don’t have to carry cash. Some use it to buy things.
5 THINGS EVERY LAWYER SHOULD KNOW ABOUT BANKRUPTCY Laura A. Deeter, Esq.
Rating Your Credit and Help for Credit Problems. What is your credit score? A score that tells everyone if you are a good risk Credit bureaus sell credit.
Credit 3 C’s of Credit. Character – Will you repay the Debt?  Have you used credit before?  Do you pay your bills on time?  Do you have a good credit.
Section 6.4 Managing Your Debts. Signs of Debt Problems If you are experiencing 2 or more of the these warning signs it is time for you to rethink your.
Filing for Bankruptcy Mr. Stasa – WE City Schools © 1.
College lesson four about credit.
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 20 Creditors’ Rights and Bankruptcy.
Credit Problems Garnishment of wages Garnishment of wages Creditor takes all or part of paycheck to satisfy a debt Repossession Repossession Taking back.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-1 Understanding Cash Flow Analysis.
CHAPTER 26 – HOW TO GET AND KEEP CREDIT What I need to know…
The Three C’s of Credit Objectives: – Students will be able to describe the “Three C’s of Credit (Capacity, character, and collateral) and factors used.
Bankruptcy. What is Bankruptcy? A federal court process that can help eliminate legal responsibility for debts or repay them over time under the protection.
Chapter 4.  What is Credit?  Installment Debt ◦ Durable Goods ◦ Longer Term = BUT  Longest Terms  Up to 30 years.
Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.
Business Law – week 7 Secured Transactions Bankruptcy Law Quiz Introduction to Employment Law Next Week.
You in the economy Notes for Chapter 17. Getting paid Salary – fixed payments at regular intervals Salary – fixed payments at regular intervals Wages.
Copyright, 1996 © Dale Carnegie & Associates, Inc. GETTING OUT OF DEBT MINI-LESSON INDIANA DEPARTMENT OF FINANCIAL INSTITUTIONS CONSUMER EDUCATION.
Credit and Financial Services Chapter 25- Each payment method has certain pros and cons that are important to know.
Chapter 1 Choosing Which Debts to Pay First. First Steps to Dealing with Debt Problems Most people in financial distress will first want to deal with.
Bankruptcy WHAT IS IT’S EFFECT?. Bankruptcy  A legal process that relieves debtors of the responsibility of paying their debts or protects them while.
Write down one costly item that you would buy right now if you had enough credit. What steps can you take now to start building and maintaining a strong.
Chapter 21 Creditors’ Rights and Bankruptcy Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior.
Bankruptcy Unit 7 Target F. Bankruptcy A legal process to get out of debt when you can no longer make all your required payments. As a last resort generally.
Going Broke Independent Living.
Choosing which debts to pay first
Unit 3: Financial Literacy
What to do if your identity is stolen
Bankruptcy and Personal Financial Records
Credit Score Consumer Math.
Financial Education for High School Students
Bankruptcy. Bankruptcy What is Bankruptcy? A federal court process that can eliminate your legal responsibility for many debts or let you replay them.
Bankruptcy By: Kenyon Briggs.
Bankruptcy Basics © 2019, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this presentation in its entirety for educational.
Presentation transcript:

Bankruptcy The truth about Chapter 7 & Chapter 13.

What is Bankruptcy? Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply can't be paid. While offering creditors a chance to obtain some measure of repayment based on what assets are available. Both parties meeting half way!

Chapter 7 Bankruptcy Chapter 7 is designed to wipe out unsecured debts like: ▫credit cards ▫medical bills ▫payday loans ▫parking tickets ▫personal loans Chapter 7 can be a relatively quick and painless process. The average Chapter 7 case is over in as little as four months.

Who Can File for Chapter 7 Bankruptcy? The majority of Chapter 7 bankruptcy filers are suffering from credit card debt, medical bills or payday loans. You need to determine if you're eligible to file for Chapter 7 using: ▫ the means test, which compares your income to your state's median income. ▫Get a Chapter 7 case evaluation with a bankruptcy lawyer.

Using Collateral to pay off debt Take AwayCannot Take Away Expensive musical instruments Collections: stamps, coins, etc. Family heirlooms Cash, bank accounts, stocks, bonds, other investments A second car or truck A second home or vacation home Motor vehicle Necessary clothing Necessary household goods or furniture Household appliances Jewelry (to a certain value) Pensions Equity in a home Tools for a debtors trade Unpaid but earned wages Public benefits (Social security, unemployment compensation, etc.) Damages for personal injury

Chapter 13 Bankruptcy Chapter 13 bankruptcy is a reorganization of debts designed to help property owners keep their: ▫ Homes ▫ Cars ▫Other valuable assets while getting a handle on debts By filing Chapter 13, you may be able to stop foreclosure, repossession, wage garnishment and debt lawsuits, and significantly reduce or eliminate credit card debt.

Who Can File for Chapter 13 Bankruptcy? Chapter 13 bankruptcy is not for everyone. In order to qualify for Chapter 13 bankruptcy, a debtor must: ▫Have a regular source of income from which to make pre-determined payments ▫Have enough disposable income to make regular payments after covering current necessary living expenses

Information Credit Card Companies Don’t Want You to Know. How does filing for Bankruptcy help people? Personal bankruptcy was designed to: ▫Eliminate or reduce debt ▫Stop foreclosure or repossession ▫Stop creditor harassment ▫Give people the breathing room they deserve

Life After Bankruptcy… Bankruptcy filing will likely stay on your credit report for up to 10 years (typically 7 years if you file under Chapter 7 bankruptcy). Tips: ▫Maintain a job ▫Pay your bills ▫Keep a bank balance

Life After Bankruptcy May be tough to get: ▫Loan ▫Low-Interest Credit Cards Keep on top of monthly payments for your rent, mortgage and utility bills, you’ll be strengthening your credit report. If you keep those habits up, you’ll likely see your credit score rise over time

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.