PF 9-1 Lesson

If you are behind on your mortgage payments, the lender might show some leeway and offer:

• foreclosure

• insolvency

• forbearance

• unsecured debt

If the total amount of your debts are greater than the total amount of your assets, you are experiencing:

• insolvency

• bankruptcy

• a personal balance sheet

• a foreclosure

If you are insolvent, what is something you can do, but should only be used as a last resort?

• debt consolidation

• get a home equity line of credit

• bankruptcy

• forbearance

A loan made where no collateral is pledged against the loan is called:

• secured debt

• home mortgage

• foreclosure

• unsecured debt

When a lender forces the sale of the collateral used to secure the loan, it’s called:

• forbearance

• foreclosure

• bankruptcy

• Chapter 7

Before considering borrowing any money, first create a ________________, stay disciplined to it, and create good habits for paying bills on time.

• personal financial statement

• bank statement

• personal balance sheet

• budget