Chapter 10

Question 1

Chapter 13

Answer 1

is known as a “wage earner “ proceeding. This plan is designed for the rehabilitation of the debtor.The funding of the plan is designed to come from future wages and earnings of the debtor. During the period covered by the plan, creditors must accept payments as they are provided in the plan. They may not seek to collect their debts by other means.

Question 2

voluntary conveyance

Answer 2

deed in lieu of foreclosure / lender accept the title

Question 3

Extension Agreement

Answer 3

Extending amortization period for the remaining principal due.

Question 4

Chapter 7

Answer 4

Straight Bankruptcy/ liquidate the debtor’s assets and distribute the proceeds among the various creditors. A lender will normally be paid in full if the value of the property is more than the balance due under the mortgage.

Question 5

Non-recourse loan

Answer 5

loan that does not hold the borrower personally liable

Question 6

Decree of foreclosure

Answer 6

court order the sale of the property by sheriff or court appointed representative.

Question 7

Technical default

Answer 7

breach of mortgage agreement for failure to keep the collateral in repair.

Question 8

Chapter 11

Answer 8

Bankruptcy to safeguard the commercial debtor’s asset, while creating reorganization plan, great concern to lenders who may find that their security is tied up for years during the reorganization process.

Question 9

Forbearance or moratorium

Answer 9

waiver of principal payments
deferred interest
partial payments
prepayments

Question 10

The Housing Act of 1964

Answer 10

The FHA requires that lenders provide relief in circumstances where the default is beyond the borrower’s control