1. © South-Western Educational Publishing Chapter 19 Problems with Credit  Getting Unstuck  Reconsidering Bankruptcy

2. GOALS © South-Western Educational Publishing Lesson 19.1 Getting Unstuck  Explain methods for solving credit problems.  Outline bankruptcy laws and choices.

3. © South-Western Educational Publishing Solving Credit Problems  The 20/10 rule  Credit counseling  Debt adjustment  Credit repair  Credit scams

4. © South-Western Educational Publishing Bankruptcy  Bankruptcy laws and their purpose  Types of bankruptcy  Legal advice  Reaffirmation of debts

5. © South-Western Educational Publishing Types of Bankruptcy  Involuntary bankruptcy  Voluntary bankruptcy  Chapter 11 bankruptcy  Chapter 7 bankruptcy  Chapter 13 bankruptcy

6. GOALS © South-Western Educational Publishing Lesson 19.2 Reconsidering Bankruptcy  Discuss the major causes of bankruptcy.  Describe the advantages and disadvantages of declaring bankruptcy.

7. © South-Western Educational Publishing Major Causes of Bankruptcy  Job loss  Emotional spending  Failure to budget and plan  Catastrophic injury or illness

8. © South-Western Educational Publishing Advantages and Disadvantages of Bankruptcy Advantages  Debts are erased.  Exempted assets are retained.  Certain incomes are unaffected.  The cost is small. Disadvantages  Credit is damaged.  Property is lost.  Some obligations remain.  Some debts can be reaffirmed.  Co-signers must pay.