Why would bankruptcy cause someone to lose their car?A.It relieves a person of their debts.B.It harms a person's credit report.C.It increases the cost of insurance.D.It causes a loss of assets.SUBMITarrow_backPREVIOUS

Which is a possible positive consequence of bankruptcy?A.Costly filing feesB.Lowered credit scoreC.Job lossD.Removal or consolidation of debtSUBMITarrow_backPREVIOUS

What is one drawback of declaring bankruptcy?A.It distributes a person's debts among many banks.B.It can allow a bank to seize a person's property.C.It often results in a civil lawsuit.D.It forces a person to pay much more than the original loan.

What is one benefit of declaring bankruptcy?A.It removes debts that a person or business cannot repay.B.It reduces interest rates on credit cards if a person has good credit.C.It changes compound interest loans into simple interest loans.D.It helps people manage debt without affecting their credit scores.

2. Which of the following statements is FALSE?Video: 5.F. P54-72 (Capital structure with other market imperfections 1)Group of answer choicesD) Bankruptcy is rarely simple and straightforward—equity holders don’t just "hand the keys" to debt holders the moment the firm defaults on a debt payment.B) With perfect capital markets, the risk of bankruptcy is not a disadvantage of debt—bankruptcy simply shifts the ownership of the firm from equity holders to debt holders without changing the total value available to all investors.A) When a firm fails to make a required payment to debt holders, it is in bankruptcy.C) Bankruptcy can be a long and complicated process that imposes both direct and indirect costs on the firm and its investors that the assumption of perfect capital markets ignores. PreviousNext

What will most likely happen to your credit score if you miss several car payments?A.Your credit score will go down.B.Your credit score will be terminated.C.Your credit score will not be affected.D.Your credit score will go up.SUBMITarrow_backPREVIOUS