Chapter 7
- work with courts to negotiate lower terms with companies
- still have to pay
- credit score lowered (not as significant as chapter 13)
Chapter 11
- for corporations only
- must be in debt
- companies doesn’t shut down
- work with courts and come up with a plan for them to make money
Subprime loan
- Given to those who don’t qualify for a loan
- lower interest rate (?? 😁 not for sure)
Revolving credit
-automatically renewed credit as debt is payed off
Cash flow
Amount of money being taken in + out
Are lenders required to tell you why you are denied credit??
YESS
How do investors make money from bonds
As bonds fluctuates (depends on where the market stands)
Chapter 13
- declaring bankruptcy
- credit score dropped
- can’t pay off anything
5 sources of credit/loans
- friends/family
- credit unions
- banks
- life insurance
- pawn broker
3 Cs of credit
- credit score/character
- capacity (ability to pay back loan)
- capital/collateral
Truth in Lending Act
-banks calculate credit scores in the same way
Equal Credit Opportunity Act
- equal opportunities to apply for loans
Race,gender, sexual orientation doesn’t matter
Fair Credit Reporting Act
- -free credit score
- promotes accuracy,fairness, and privacy for data
Consumer Credit Reporting Reform Act
- free credit score per year
- limits their info from other people
Fair Credit Billing Act
Helps consumers w/ billing mistakes
Fair debt collections practices act
- can’t discuss with others
- can’t call in middle of night
- need to identify who they are
- can’t be significantly rude
Subprime loan
Given to those who don’t qualify for a loan
Considered risky for banks
