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9 Cards in this Set
- Front
- Back
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Major types of debts |
mortgage debt - first/second mortgage consumer debt - revolving/nonrevolving dredit secured debt - home/car/securities unsecured debt - credit cards/personal lines/personal loans |
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What client data to gather for debt mgmt |
financial statement credit report credit score |
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debt service ratio |
total loan payments / net income |
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front ratio |
PITI / gross income |
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back ratio |
PITI + consumer debt payments / gross income |
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What is FICO |
Fair Isaac Corp 35% payment history 30% amount owed 15% length of credit history 10% short term debt |
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Chapter 7 bankruptcy |
stays on credit report 10 years cannot use more than once every 8 years straight bankruptcy – voluntary or involuntary; person, corporation, partnerships liquidation proceeding |
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Chapter 13 bankruptcy |
Stays on credit report for 7 years Can refile every 6 years must have income 3 year repayment plan eligible debts remain after completion of repayment |
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Chapter 11 reorganization |
retain possession of assets approved by at least 2/3 or each creditor |
