Basics Beginner: When You Are Overwhelmed by Debts

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
If you've got a lot of debt and you want help speaking to your creditors, contact a _______.
Choose wisely. There is only one correct answer.
Non-profit debt counseling organization. These agencies have trained counselors who can help you talk to your creditors and work out a payment plan.
2.
Which of the following is true about child support payments?
Choose wisely. There is only one correct answer.
They are essential debts. The obligation to pay child support never expires and cannot be wiped out in bankruptcy.
3.
One of the few exceptions to the rule that a creditor must sue to get a court judgment to seize funds from your bank account or place a lien on your property is the _______.
Choose wisely. There is only one correct answer.
IRS. Federal law allows the IRS to seize the contents of your bank accounts and place a lien on your house for back taxes without getting a court judgment first.
4.
What should you do if you are behind on your payments on your home, credit cards, or other loans?
Choose wisely. There is only one correct answer.
Contact them to see what steps can be made. Many times, your creditors will want to work with you to avoid hassles, expenses and lost revenue due to the actions they would have to take.
5.
Bill collectors are allowed to call you late at night to demand payments from you.
Choose wisely. There is only one correct answer.
False. Federal law prohibits bill collectors from calling you in the early mornings and late evenings, harassing you, making unauthorized charges, making false statements to you, and contacting you at work.