Bankruptcy. A legal process to get out of debt when you can no longer make all your required payment.

Slides:

Advertisements

Similar presentations

Credit Buy Now, Pay Later. Credit Someone is willing to loan you money (principal) in exchange for your promise to pay it back, usually with interest.

Advertisements

Chapter 5 Credit Management

Chapter 19 Lesson 2 Budgeting Your money.

Personal Finance Chapter 1: Personal Financial Planning

Chapter 9-Section 2 Bankruptcy Choices. Bankruptcy  A legal procedure to relieve a person of excessive debt.  Voluntary bankruptcy-the individual asks.

Bankruptcy Test Review. True/False Bankruptcy stays on your credit report for 10 years and decreases your credit score.

Problems with Credit Unit 3. Did You Know?  Most lottery winners spend all of their winnings and are broke within 5 years.  40% of all personal bankruptcies.

Chapter 22: Borrowing Models Lesson Plan

Going Broke Independent Living. What are some issues that lead individuals and families to go “broke”?  1. Medical Expenses  2. Unemployment/job loss.

Managing Your Debts Section Understanding Business and Personal Law Managing Your Debts Section 22.3 Borrowing Money and Buying on Credit What You’ll.

Laws Protecting Debtors/Creditors and Bankruptcy Unit C Basic Business Law Objective 6.02 Part D.

Problems With Credit Chapter 19.

Financial Hardships Unit 1 Lesson 8 04/09. why consumers don’t pay loss of income (48%) Unemployment (24%) Illness (16%) Other (divorce, death) (8%) overextension.

Your rights Credit. Your rights Truth in Lending Act (1968) Ensures consumers are fully informed about cost and conditions of borrowing. Fair Credit Reporting.

DEBT What are your options? and What can you do to prevent It? Written by Kindra Watters Georgia CTAE Resource Network 2010.

Bankruptcy. Importance of Numbers What do you know about bankruptcy?

In Unit 4 we will see the importance of using and managing credit effectively in the financial planning process.

Personal Finance Chapter 16

Debt Overload. Good Debt vs. Bad Debt ► “ Good debt ” would be considered any debt that will help you improve your education and/or your ability to earn.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

Banks You will be able to describe the functions of commercial banks and central banks Money encouraged specialization by making trade easier. Specialization.

© Oklahoma State Department of Education. All rights reserved.1 Personal Bankruptcy Standard 13.1 Bankruptcy.

FINANCIAL DECISIONS AND GOALS

Bankruptcy What is it’s Effect?. Bankruptcy A legal process that relieves debtors of the responsibility of paying their debts or protects them while they.

Bankruptcy. What is Bankruptcy?  Bankruptcy is a federal court process that can help you eliminate legal responsibility for many of your debts or repay.

Buying a House Mortgages & Foreclosures. Your Dream House What does it look like? What does it look like? How many bedrooms/bathrooms? How many bedrooms/bathrooms?

Credit Credit Problems & Solutions.

Section 5-1 Monthly Payments. What do you know about Credit? Credit is whenever goods, cash, or services are provided in the promise to pay at a future.

 Buying on credit = buy goods and services now and pay for them later (usually with interest)  Having credit depends on the suppliers’ confidence in.

The Basics of Credit Objective: To explain the concept of consumer credit, including major types and their benefits/drawbacks.

A person or company with insufficient assets to cover their debts.

What is the difference between savings and investments?

Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.

Chapter 31 The Cost of Credit. Interest Calculations - Determining Factors  Interest Rates – The percentage that is applied to your debt expressed as.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

Chapter 22: Borrowing Models Lesson Plan Simple Interest Compound Interest Conventional Loans Annuities 1 Mathematical Literacy in Today’s World, 8th ed.

 the ability to borrow money in return for the promise of REPAYMENT  Before using credit you should ask your self:  Is it a want or a need?  Do you.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

Loans Presented by S. Cox. Objectives  Describe the different types of loans  Explain the types of financing assistance provided to businesses.

Unit 2 “Personal Financial Decisions”.   Personal Financial Planning is arranging to spend, save, and invest money to live comfortably, have financial.

Filing for Bankruptcy Mr. Stasa – WE City Schools © 1.

Credit Whole or partial payment is delayed Pawn Collateral Secured/Unsecured Loan Garnishment Finance Charges Credit Rating.

Bankruptcy What is Bankruptcy?  A federal court process that can eliminate your legal responsibility for many debts or let you replay them over time.

Reflection # How do you resolve stress in your life? (3-5 sentences) Bell Quiz Day 2 Credit.

Credit – Part 2 Vocab, Bankruptcy and Laws. Credit Vocabulary.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

By: Sydney Smith.   Click on the link below and please will out the test to the best of your ability Pre-Test.

Getting Unstuck. 20/10 Rule Total borrowing should not exceed 20% of annual take-home pay. Monthly Credit payments should not exceed 10% of monthly take-home.

A Dealing with Dollar $ workshop Understanding Credit and Debt.

Bankruptcy. What is Bankruptcy? A federal court process that can help eliminate legal responsibility for debts or repay them over time under the protection.

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.

Bankruptcy. A legal process to get out of debt when you can no longer make all your required payment.

CREDIT Personal Finance. Advantages of Credit  Improved Standard of Living:  Credit lets you purchase items now, instead of having to wait until you.

Bell Ringer #12 – 5/17/ What do you think the difference is between a “job” and a “career”. 2. Name one “career” that you would like to have. 3.

October 17, 2011 Objective: Students will learn about credit and the different types of credit.

To play click on circle Back to menu BankruptcyCredit Loans Potpourri.

Chapter © 2010 South-Western, Cengage Learning Problems with Credit Solving Credit Problems Bankruptcy as an Option 19.

Responsibilities and Costs of Credit

Debt Management Unit VIII: Banking and Credit Lesson 5.

Bankruptcy WHAT IS IT’S EFFECT?. Bankruptcy  A legal process that relieves debtors of the responsibility of paying their debts or protects them while.

Bankruptcy Unit 7 Target F. Bankruptcy A legal process to get out of debt when you can no longer make all your required payments. As a last resort generally.

Chapter 12.2: Bankruptcy.

Bankruptcy All you would ever need on bankruptcy:

Bellwork What do you know about bankruptcy? FYI

Bellwork What do you know about bankruptcy? Our plan for today

Bankruptcy All you would ever need on bankruptcy:

Bankruptcy All you would ever need on bankruptcy:

Bankruptcy All you would ever need on bankruptcy:

Bankruptcy All you would ever need on bankruptcy:

Presentation transcript:

Bankruptcy

A legal process to get out of debt when you can no longer make all your required payment.

Reasons for Bankruptcy Medical Expenses Job Loss Business Losses Natural Disaster Credit Card Debt

Debt The entire amount of money a person owes to lenders.

Inflation An increase in the price of goods and services. A dollar in the future won’t buy as much as a dollar today. Did you know… Inflation usually averages between 3% and 4% each year. Inflation has influenced our economy for decades ranging from.5% to 18%. In 1971 a first class stamp cost 8 cents.

Bankruptcy Basics Chapter 7 LIQUIDATION Chapter 13 REORGANIZATON

Consequences of Bankruptcy Influences financial freedom Limits choices Pay more for credit Other people absorb your debt

Changes to Bankruptcy Law New law in effect October 17, New limits on personal bankruptcy. Requires those filing to get counseling before they are allowed to file. Bars filers with above-average income from filing Chapter 7 (liquidation). Those who have $100/month left over after paying certain debts and expenses have to submit repayment plan under Chapter 13 guidelines (reorganization).

Alternatives to Bankruptcy Out of court settlement Reduction of payments Attaining help from consumer credit counseling Payment of debts by selling or borrowing on property.

The United States Courts website offers several videos on the bankruptcy process. Click on the screen to go to their site.