Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. Assets
b. Bankruptcy
c. Creditor
d. Debtor
e. Default
f. Insolvency
g. Involuntary filing
h. Liabilities
i. Liquidation
j. Means test
k. Priority debt
l. Reorganization bankruptcy
m. Secured debt
n. Straight bankruptcy
o. Voluntary filing
1. A form of bankruptcy in which the debtor agrees to pay back all or a portion of his or her debts over a period spanning from three to five years. 1. __________
2. A complex formula that measures an individual’s income relative to the median income of the people in the state where he or she resides. 2. __________
3. A form of bankruptcy that occurs when creditors pressure a debtor to file.
3. __________
4. The legal state that occurs when a debtor is insolvent, is in default, and is unable to fulfill his or her obligations to pay back his or her creditors. 4. __________
5. An individual or business that owes money. 5. __________
6. An item deemed sufficiently important under Chapter 13 of the bankruptcy law that it must be paid in full. 6. __________
7. The value of the property an individual or business owns. 7. __________
8. An individual or business to which money is owed. 8. __________
9. A form of bankruptcy that occurs when the debtor himself or herself i les a bankruptcy petition. 9. __________
10. A debt for which a specific asset is used as collateral. 10. __________
11. The value of what an individual or business owes. 11. __________
12. A form of bankruptcy in which a trustee collects the debtor’s nonexempt property, sells it, and dispenses the proceeds. 12. __________
13. The state that occurs when an individual’s or business’s liabilities exceed assets.
13. __________
14. A process in which assets are sold to obtain cash. 14. __________
15. The state in which a debtor fails to meet one or more financial obligations to his or her creditors. 15. __________