Key Bankruptcy Terms

Fill in the blank: An ______ is a resource with economic value that an individual, corporation, or country owns with the expectation that it will provide future benefits.

• asset

• liability

• expense

• debt

Fill in the blank: ______ is a legal process for declaring that a person is unable to pay his or her debts.

• Bankruptcy

• Foreclosure

• Liquidation

• Repossession

Fill in the blank: A ______ ______ is an independent person appointed to administer a bankruptcy case, collect assets, and pay creditors.

• Bankruptcy trustee

• Financial advisor

• Estate planner

• Credit analyst

Fill in the blank: A ______ is an itemized summary of probable income and expenses for a given period.

• Budget

• Invoice

• Receipt

• Statement

Fill in the blank: ______ is a type of bankruptcy that requires individuals unable to pay their debts to sell his or her assets to pay creditors.

• Chapter 7

• Chapter 11

• Chapter 13

• Chapter 9

Fill in the blank: A ______ is a person, financial institution, or other business that lends money.

• Creditor

• Debtor

• Borrower

• Investor

Fill in the blank: A ______ is a person or business that owes money in exchange for loans or for goods or services purchased with credit.

• Debtor

• Creditor

• Investor

• Lender

Fill in the blank: ______ (liabilities) is money owed in exchange for loans or for goods or services purchased with credit.

• Debts

• Assets

• Equity

• Revenue

Fill in the blank: ______ is the goal of bankruptcy—a court order that releases the debtor from paying debts (liabilities) owed.

• Discharge

• Foreclosure

• Liquidation

• Repossession

Fill in the blank: ______ ______ is debts (liabilities) that can be eliminated (wiped out) through a bankruptcy proceeding.

• Dischargeable debt

• Non-dischargeable debt

• Secured debt

• Unsecured debt