Business and Personal Law

Chapter 12: Credit Protection and Bankruptcy

Self Check Answers

Section 12.1

1. repossess property or garnish a worker's wages
2. the costs and terms of credit, including both the finance charge and APR of a loan
3. threatening debtors with violence, using obscene language, calling consumers at inconvenient times or places, impersonating government officials or attorneys, obtaining information under false pretenses, collecting more money than is legally owed, or telling anyone else about the debt

Section 12.2

1. consolidation loans, payment plan with creditors, financial counseling
2. Voluntary bankruptcy – debtor files to eliminate or reduce burden of debt. Involuntary bankruptcy – creditors initiate bankruptcy proceedings against the debtor instead of the debtor him- or herself.
3. Chapter 7 discharges all (or most) debts. Chapter 13 reorganizes debts to get financial affairs in order.