Credit And Debt Management

Question 1

FICO score components

Answer 1

Past delinquency (35%)
Way credit was used (30%)
Age of credit file (15%)
Customer mix of credit (10%)
Number of credit requests (10%)

Question 2

Chapter 13 bankruptcy

Answer 2

People with regular income and limited debt can keep the properties. The court approves a repayment plan to payoff the debt in 3 to 5 years

Question 3

Chapter 7 bankruptcy

Answer 3

Liquidate all non-exempt assets. A court appointed official sells property or turns it to creditors. Discharge of debt under chapter 7 is allowed once every 8 years.

Question 4

Criteria for filing chapter 7

Answer 4

Two criteria
1. Average income in 6 months is less than the state’s median income.
2. Fixed compulsory expenses make the leftover income below the level

Question 5

How does identity theft happen

Answer 5

1. Lost or stolen information (30%)
2. Friends or family (15%)
3. Stolen mail or dumpster dive (9%)
4. Computer virus or spyware (5%)
5. Phishing or Pharming (3%)