Fincert - CPFC Study questions well
answered graded A+
Bank setoff - ANS ✔✔A provision in a bank loan that allows the bank to seize an individual's
bank account(s) to satisfy the amount of money owed, without any legal proceedings.
Collections - ANS ✔✔Debt that has been turned over to an agency by a creditor. Agency then
attempts to recoup the debt.
Eviction - ANS ✔✔The process of removing a tenant from a rental property by a law
enforcement officer.
Foreclosure - ANS ✔✔A legal proceeding initiated by a creditor to take possession of property
on which the mortgage has been defaulted.
Lawsuits - ANS ✔✔Criminal or civil actions brought before a court in which the party
commencing the action (the plaintiff) seeks a legal remedy
Lien - ANS ✔✔An official claim or charge against collateral for funds owed. May be placed on
either personal property or real property, turning that property into collateral for the money or
services owed.
Repossession - ANS ✔✔A financial institution takes back an object that was used as either
collateral, or rented or leased in a transaction
Wage garnishments - ANS ✔✔The most common type of garnishment. This process is the result
of a court order which mandates that funds be deducted from an employee's wages. The most
,common examples of reasons for garnishments are unpaid child support, unpaid taxes, unpaid
court fees and any other type of money judgments
Two most common types of bankruptcy - ANS ✔✔Chapter 7 and Chapter 13
Bankruptcy - Chapter 7 - ANS ✔✔Straight liquidation bankruptcy. Debtor petitions the court to
take their non-exempt assets and liquidate them to pay off their debts. If their debts exceed
their assets, those debts are forgiven. Stays on an individual's credit report for ten years from
the filing date.
Bankruptcy - Chapter 13 - ANS ✔✔Wage earners plan for bankruptcy. Debts will be restructured
by the court. The repayment schedule will be determined by the debtor's income and expenses.
Often keep certain assets, such as their homes.
Stays on an individual's credit report for seven years from filing.
Debt Management Plans - ANS ✔✔A third-party organization, typically a non-profit credit
counseling agency, negotiates with the individual's creditors on their behalf to set up a plan for
repaying their debt. The individual then makes monthly payments directly to the agency which
in turn remits these funds to creditors.
Debt Consolidation - ANS ✔✔Taking out a loan for the purposes of paying off and consolidating
many debts into one debt.
Debt Settlement - ANS ✔✔A third-party organization, typically a for-profit debt settlement
company or law firm, negotiates with creditors in hopes that the creditors will accept reduced
payment in lieu of the full balance due.
Bankruptcy - ANS ✔✔A legal process whereby an individual's outstanding debt is either reduced
or eliminated under protection and supervision of the court.
, Options for Managing Debt - ANS ✔✔Self-Help, Debt Management Plans, Debt Consolidation,
Debt Settlement, Offer in Compromise (IRS), Mortgage Modification, Bankruptcy
Property and Liability Insurance - ANS ✔✔Sometimes known as casualty insurance, refers to all
policies that cover damage to, or loss of, a policyholder's property.
Five main types of property and liability insurance - ANS ✔✔1) vehicle insurance
2) homeowners insurance
3) renters insurance
4) umbrella insurance
5) flood insurance
Vehicle Insurance - ANS ✔✔Pay premiums to insurance company, which then pays most of the
costs involved with vehicle damage or accident.
Homeowners Insurance - ANS ✔✔Insurance that protects home against damages to the house
or possessions. Liability coverage against accidents in home/property. Required for mortgages.
Renters Insurance - ANS ✔✔Protect renter's belongings in a rental property. Also provides
liability coverage within rented property.
Umbrella Insurance - ANS ✔✔Additional insurance that provides coverage in excess of the basic
policy limits of other insurance policies
Flood Insurance - ANS ✔✔Insurance that compensates for physical damage to a property by
flood. Typically not covered under standard hazard insurance.
answered graded A+
Bank setoff - ANS ✔✔A provision in a bank loan that allows the bank to seize an individual's
bank account(s) to satisfy the amount of money owed, without any legal proceedings.
Collections - ANS ✔✔Debt that has been turned over to an agency by a creditor. Agency then
attempts to recoup the debt.
Eviction - ANS ✔✔The process of removing a tenant from a rental property by a law
enforcement officer.
Foreclosure - ANS ✔✔A legal proceeding initiated by a creditor to take possession of property
on which the mortgage has been defaulted.
Lawsuits - ANS ✔✔Criminal or civil actions brought before a court in which the party
commencing the action (the plaintiff) seeks a legal remedy
Lien - ANS ✔✔An official claim or charge against collateral for funds owed. May be placed on
either personal property or real property, turning that property into collateral for the money or
services owed.
Repossession - ANS ✔✔A financial institution takes back an object that was used as either
collateral, or rented or leased in a transaction
Wage garnishments - ANS ✔✔The most common type of garnishment. This process is the result
of a court order which mandates that funds be deducted from an employee's wages. The most
,common examples of reasons for garnishments are unpaid child support, unpaid taxes, unpaid
court fees and any other type of money judgments
Two most common types of bankruptcy - ANS ✔✔Chapter 7 and Chapter 13
Bankruptcy - Chapter 7 - ANS ✔✔Straight liquidation bankruptcy. Debtor petitions the court to
take their non-exempt assets and liquidate them to pay off their debts. If their debts exceed
their assets, those debts are forgiven. Stays on an individual's credit report for ten years from
the filing date.
Bankruptcy - Chapter 13 - ANS ✔✔Wage earners plan for bankruptcy. Debts will be restructured
by the court. The repayment schedule will be determined by the debtor's income and expenses.
Often keep certain assets, such as their homes.
Stays on an individual's credit report for seven years from filing.
Debt Management Plans - ANS ✔✔A third-party organization, typically a non-profit credit
counseling agency, negotiates with the individual's creditors on their behalf to set up a plan for
repaying their debt. The individual then makes monthly payments directly to the agency which
in turn remits these funds to creditors.
Debt Consolidation - ANS ✔✔Taking out a loan for the purposes of paying off and consolidating
many debts into one debt.
Debt Settlement - ANS ✔✔A third-party organization, typically a for-profit debt settlement
company or law firm, negotiates with creditors in hopes that the creditors will accept reduced
payment in lieu of the full balance due.
Bankruptcy - ANS ✔✔A legal process whereby an individual's outstanding debt is either reduced
or eliminated under protection and supervision of the court.
, Options for Managing Debt - ANS ✔✔Self-Help, Debt Management Plans, Debt Consolidation,
Debt Settlement, Offer in Compromise (IRS), Mortgage Modification, Bankruptcy
Property and Liability Insurance - ANS ✔✔Sometimes known as casualty insurance, refers to all
policies that cover damage to, or loss of, a policyholder's property.
Five main types of property and liability insurance - ANS ✔✔1) vehicle insurance
2) homeowners insurance
3) renters insurance
4) umbrella insurance
5) flood insurance
Vehicle Insurance - ANS ✔✔Pay premiums to insurance company, which then pays most of the
costs involved with vehicle damage or accident.
Homeowners Insurance - ANS ✔✔Insurance that protects home against damages to the house
or possessions. Liability coverage against accidents in home/property. Required for mortgages.
Renters Insurance - ANS ✔✔Protect renter's belongings in a rental property. Also provides
liability coverage within rented property.
Umbrella Insurance - ANS ✔✔Additional insurance that provides coverage in excess of the basic
policy limits of other insurance policies
Flood Insurance - ANS ✔✔Insurance that compensates for physical damage to a property by
flood. Typically not covered under standard hazard insurance.
