Key Terms
What is the legal term for not being able to pay your debts?
Insolvency
What is the score that shows how well you pay back money you borrow?
Credit score
Who decides whether to approve your bankruptcy case?
Bankruptcy judge
True or False: Bankruptcy means you lose everything.
False
What do you call the person who owes money?
Debtor
True or False: Bankruptcy can affect your credit score.
True
What document must you file to start a bankruptcy case?
Petition
About how many years can bankruptcy stay on your credit report?
Up to 10 years
What do you call the person or company that is owed money?
Creditor
What is the amount of money you owe called?
Debt
What happens to most of your debts in Chapter 7 bankruptcy?
They are erased (discharged)
What U.S. government branch handles bankruptcy cases?
Federal courts
What is the court process of clearing or repaying debts called?
Bankruptcy
What kind of debt cannot usually be erased in bankruptcy?
Student loans
What is the term for items you can keep after filing bankruptcy?
Exempt property
True or False: Famous people have filed for bankruptcy too.
True
What is the name of the list showing all your debts and assets?
Bankruptcy petition
What type of card lets you borrow money up to a limit?
Credit card
What is the meeting called where creditors can ask questions?
341 meeting (creditors’ meeting)
What symbol is used to represent money and debt in many countries?
The dollar sign ($)