Consumer Protection Laws Flashcards
Automatic Stays apply to Alimony or Child Support?
No
Do automatic stays apply to Criminal suits?
No
2 chapters of bankruptcy
Chapter 7 Chapter 13
What does bankruptcy stop?
Stops foreclosures, property repossessions, sales of propert
State exemption laws
Allows the debtor to keep certain property
Examples of exempted property
Portion of home equity
Clothes
Household items
Furnishings and appliances
Cars of limited value
Tools used in business
Jewelry worth less than $1875
pensions and public benefits
SS, welfare, unemployment comp accumulated in a bank account
Non exempt property that must be given up in Bankruptcy
cash, bank accts, stocks, bonds, other investments
2nd homes/vacation homes
2nd cars or trucks
Stamps, coins, other collections
family heirlooms
State vs Federal bankruptcy exemptions
States can opt out of federal exemptions
Some ALLOW YOU TO CHOOSE which exemption list you want state or fed
Chapter 7
-eliminates debt by selling personal property to repay creditors
-monthly income avgd over 6 months prior to filing
-income must be less or equal to states median
-if exceeds median a means test is applied
Means test
determines if enough disposable income to repay at least a portion of unsecured debt over a 5 year period
When does chapter 13 apply
If debtors have more than a specified amount in DISPOSABLE INCOME
Chapter 13
allows debtors to keep all personal assets, but obligated to repay debt in full over a period of time
What happens at end of bankruptcy
Once creditors are repaid a discharge is issued
Requirement prior to receive discharge from bankruptcy
Complete a personal financial management course
How long does bankruptcy stay on credit report?
10 years
What happens if you get behind on bankruptcy payments
Debtor can amend the repayment plan
What income factors into bankruptcy repayments?
Wages, rental income, benefit payments
Chapter 13 thresholds based on what type of debt
Secured - mortgage or car loans
Unsecured - credit card debt
Both under certain thresholds that adjust for inflation
Chapter 13 thresholds adjusted for inflation how often
every 3 years
Chapter 7 debts discharged how many days after assets are distributed to creditors?
115 days
Fair Credit Reporting Act
-Everyone can request free credit report 1x a year
-can challenge incorrect info
-can sue agency if they dont correct
If employers want to review your credit what do they need?
your written permission
Truth in Lending act
- lenders must disclose the TRUE COST of consumer credit, explaining all charges, terms and conditions in plain english
- think “truth”
Truth in lending right of recission
3 days in any loan agreement where home used for collateral
Truth in lending credit card provisions
-cant be liable for more than $50 per card
-companies cant send unauthorized cards
Fair Credit Billing Act
-procedures for correcting billing errors
-allows consumers to withhold payment on defective items
-limits time some info can be kept in a credit card file
-think “billing”
equal credit opportunity act
-cannot discriminate - cant discriminate against someone on public assistance
- written explanation of any adverse actions taken
Would you have to give up a family heirloom or stamps/coin collection in bankruptcy?
Yes. These are not excluded
Jewelry exclusion - what can you keep in bankruptcy?
You can keep jewelry worth less than $1875
How do you pay the debt under chapter 7?
You sell property
Repayment plan
An installment plan to repay creditors an amount they would have received under chapter 7, or more
Fair debt collection act
prohibits unfair practices by DEBT COLLECTORS
Electric Fund Transfer Act
atm card is lost or stolen - $50 if you notify within 2 biz days, $500 if notified within 3-59 days
Fair credit and charge disclosure act
co’s must disclose FEES, TERMS, INTEREST RATES on cards
Graeme Lesh Bliley Financial Modernization act
safeguards privacy of PERSONAL INFO held by bank
must send privacy notice
you can opt out of having info shared with 3rd parties
What to do if identity is stolen
file complaint with FTC and police report to extend fraud alert protection for 7 YEARS
Is alimony a dischargeable debt in bankruptcy?
No
