Business and Personal Law

Chapter 12: Credit Protection and Bankruptcy

Online Practice Tests

1
Repossession occurs when
A)a creditor reclaims property on which it has a lien if the debtor does not make a payment.
B)a worker's earnings are withheld for payment of a debt.
C)a debtor reclaims property on which it has a lien if the creditor does not make a payment.
D)the interest rate is restricted due to local usury laws.
2
The Fair Debt Collection Practices Act makes it illegal for
A)debt collectors to impersonate government officials.
B)you to seek the services of a credit repair organization.
C)banks and businesses to discriminate against potential creditors.
D)you to be denied credit.
3
The moment a petition for bankruptcy is filed in the court,
A)the debts are cleared.
B)your credit cards are revoked.
C)lawsuits involving divorces and child custody are suspended.
D)an automatic stay goes into effect.
4
Ordinary bankruptcy is also called
A)Chapter 7.
B)Chapter 11.
C)Chapter 12.
D)Chapter 13.
5
Chapter 12 bankruptcy allows
A)a single creditor to discharge $11,625 of debt.
B)family farmers to create a plan for debt repayment that allows them to keep their farm running.
C)individual debtors to reorganize their debts.
D)businesses to reorganize their financial affairs and remain open.
6
The Fair Credit Billing Act requires
A)debt collectors to identify themselves when calling to collect a debt.
B)creditors to correct billing errors brought to their attention.
C)debtors to pay disputed amounts while creditors are making corrections.
D)credit repair organizations to offer their services for free.
7
The Truth in Lending Law is also called the
A)Fair Credit Reporting Act.
B)Fair Credit Billing Act.
C)Consumer Credit Protection Act.
D)Fair Debt Collection Practices Act.
8
In order to compare the cost of loans from different lenders, you need to know both
A)the usury charge and the loan fees.
B)the finance charge and the usury fees.
C)length of the loan and the usury charge.
D)the finance charge and the APR.
9
Garnishment of a worker's wages cannot exceed
A)10 percent of weekly take home pay.
B)25 percent of weekly take home pay.
C)10 percent of monthly take home pay.
D)25 percent of monthly take home pay.
10
A usury law restricts the amount of
A)debt a person has.
B)credit cards a person has available to use.
C)income a person can make if filing for bankruptcy.
D)interest charged on a loan.
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