What Is Bankruptcy?
Is everyone eligible for Bankruptcy?
NO
The Action of Selling Assets to repay creditors
Asset Liquidation
Loss of ____ is a very common cause of bankruptcy
Income
Officially owing money you have not yet paid
Debt
Bankruptcy allows one to reorganize their ____
Finances
A bankruptcy will remain on your credit report for up to __ _____.
10 Years
Consult with a ________ ______ to gain insights into managing your finances effectively and explore debt consolidation options.
financial advisor/credit counselor
Unexpected _____ bills or a lack of adequate health insurance coverage can quickly lead to overwhelming debt.
Medical
Name 3 items you are allowed to keep when you file for bankruptcy
Personal Items, Clothing, Household Furniture, Food, and/or Equipment
After bankruptcy, acquiring credit or loans may be difficult, and if available, often come with higher _______.
Interest rates
A savings account to cover unexpected expenses and avoid relying on credit cards or loans during financial hardships.
Emergency Fund
Having too many open _____ _____, even if you're not using them, can hurt your credit score by making you look more risky to lenders.
Credit Lines
Who sells your assets and collects your funds to pay off your debt?
Licensed Insolvency Trustee (LIT)
Majority of your _____ will not be in your control and go straight to creditors, bank, expenses, etc..
Income
_________ & _________ _________ ensure that you allocate funds for savings and emergencies to avoid unexpected bankrupting expenses.
Budgeting & Financial Planning
Buying items you cannot afford and/or with money you do not have
Over Spending
In most jurisdictions, bankruptcy is imposed by a ____ ____, often initiated by the debtor.
Court Order
What Does a Negative Credit Score Lead To?
It can affect your ability to rent an apartment, secure employment, or get favorable insurance rates.
Why should you want to avoid bankruptcy if it simply gives you a fresh start?
Destroys Credit, Loss of Assets and Almost Impossible to purchase loans, credit cards, mortgages and more.
Divorce comes with heavy fees that lead to bankruptcy. Name 2.
Legal fees, Child Support, Alimony, Separate Housing Costs