Business Law Final (4 Discrimination)

Types of debts

• Unsecure debt

• Secure debt

Unsecure debts

Only as similar as good as the debtor’s promise to pay

How often can you file for bankruptcy?

Every 10 Years

Secure debts

In addition to a promise to pay; also have property to stand good for the debt

Examples of unsecure debt

• Credit card bill

• Student loans

Examples of secure debts

mortgage

Collateral

Property subject to security interest

What are the collection judgements?

• Garnishment

• Attatchment

• Execution

Garnishment

Order to seize the debtor’s wages

Attachment

Order to seize a debtor’s account

Execution

Order to sell property of the debtor

Judgment

Court finding debtor owes someone money

What are some types of bankruptcy

• Chapter 7 - Dissolution

• Chapter 11 - Reorganization

• Chapter 13 - Wage Earner’s Plan

Chapter 7 Bankruptcy

Surrender all non-exempt property and discharges all debts

Chapter 11 Bankruptcy

Allows businesses to reorganize and manage large liabilities, restructure to keep a viable business active

Chapter 13 Bankruptcy

Turn finances over to a trustee for 3-5 years with set payment, then debt are discharged