Chapter 12 Vocab Flashcards
The legal process by which a debtor can make a fresh start through the sale of assets to pay off creditors.
Bankruptcy
When the debtor files for bankruptcy to eliminate or reduce the burden of debt.
Voluntary Bankruptcy
When the creditors begin the proceeding instead of the debtor.
Involuntary Bankruptcy
When a creditor reclaims property on which it has a lien if the debtor doesn’t make payment.
Repossession
The legal procedure through which a worker’s earnings are withheld for payment of a debt.
Garnishment
law restricting the amount of interest that can be charged.
Usury Law
Allows individual debtors to discharge all of their debts and get a fresh start.
Chapter 7 Bankruptcy
Allows businesses to reorganize their financial affairs and still remain in business.
Chapter 11 Bankruptcy
Allows family farmers, and fishing businesses, create a plan for debt payment that allows them to keep the operations running.
Chapter 12 Bankruptcy
Permits individuals debtors to reorganize their debts and develop repayment plans.
Chapter 13 Bankruptcy
A federal law that requires creditors to inform consumers of the cost and terms of credit.
Consumer Credit Protection Act
Federal law that grants people the right to know what is contained in their credit reports.
Fair Credit Reporting Act
Makes it illegal for banks and businesses to discriminate against credit applicants on the basis of their gender, race, marital status, national origin, religion, age, or because they get public assistance income.
Equal Credit Opportunity Act
Prohibits certain practices by debt collectors.
Fair Debt Collection Practices Act
Requires creditors to correct billing errors brought to their attention.
Fair Credit Billing Act
