Credit Delinquency

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Credit Delinquency
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Garnishment

• This is when a creditor may legally take
  possession of money or goods held by a third
  party in payment of a borrowers debt.
• a creditor may take money directly from your
  employer before it even gets to the bank.
• This is done legally through a court order

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Prevention

• Make payments on time
• If you can not pay, inform creditor right away to
  set up a payment plan
• Be up front and truthful
• KEEP GOOD RECORDS
• Work politely with creditors so they will work
  with you vs. a collection agency.
• Respond to all legal documents, even if there is
  a mistake on their end.

4
Repossession

• The process of taking an asset used for
  collateral and selling it to pay a dept.

Foreclosure

• A legal proceeding a creditor can use when a
  borrower does not make mortgage payments.
• - you force the sale of a house
• - the house money made pays the lender
• - you loose all money you put into the home

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Bankruptcy

• A legal procedure to relieve a person who can not
  pay his or her debts
• It allows the person more time to pay off slowly
• It must be granted b a federal court
• Person may have to surrender assets for
  collateral
• It is extremely damaging to credit history
• Can limit your chance to ever get a loan, have
  credit or even in some cases, hold a job

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Why are people granted Bankruptcy?

• Extensive medical bills or medical condition
• Small business failure
• Overspending
• No Employment after unemployment no longer
  counts
• Unexpected catastrophe

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• There are six types of bankruptcy under the
  Bankruptcy Code
• Chapter 7 basic liquidation for individuals and
  businesses
• Chapter 9 municipal bankruptcy
• Chapter 11 or reorganization, used primarily by
  business debtors, but sometimes by individuals
  with substantial debts and assets
• Chapter 12 for family farmers and fishermen
• Chapter 13 rehabilitation with a payment plan
  for individuals with a regular source of income
• Chapter 15 international cases.

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Financial Forecasts

• http//www.bankrate.com/dls/news/FinancialForecast
  /expert_predictions_financial_forecasts_a1.asp?car
  et2a