Debt, Credit, And Bankruptcy

Question 1

Secure Debt

Answer 1

Any debt that is secured by real property
- Mortgage
- Car loan

Question 2

Unsecure Debt

Answer 2

Debt that is not secured by collateral
- Credit Cards
- Personal loans
- Lines of Credit

Question 3

True or False:
A divorce decree will discharge third party debts

Answer 3

False

Question 4

Chapter 7 Bankruptcy

Answer 4

Allows you to liquidate all of your assets and use proceeds to pay off your debts, erasing the debts that cannot be paid in full

All unsecured debts are forgiven and all assets over the statutory minimum protected amounts are forfeited

Creditors have right to repossess fair share of assets

Net proceeds from sale are divided pro-rate among the unsecured creditors

Question 5

Chapter 13 Bankruptcy

Answer 5

Allows you to develop a pay-off plan over a 3-year period

Assets may be preserved and the debtor is allowed to pay off all of the secured debt and portion of the unsecured debt

Debtor needs to make payments under a plan

Question 6

Debts that cannot be discharged during bankruptcy

Answer 6

• Child support
• Spousal support
• Some student loans
• Recent taxes

Question 7

What is the asset value of insurance?

Answer 7

The cash surrender value

Question 8

Can a property settlement note be guaranteed by a QDRO?

Answer 8

Yes

Question 9

When can you start collecting widow social security benefits?

Answer 9

Starting at age 60