Use the process diagram for one overdue account. What stage belongs in the blank?

A lender's account path is shown in the diagram. What stage belongs between delinquency and charge-off?

A loan agreement says the account enters default after 90 days unpaid. Jordan's payment is 45 days late. What status applies now?

Read the account path. What lender action belongs in the blank before the account goes to collections?

An account is charged off after months unpaid. What does the charge-off mean for the borrower?

Use the loan path. After default, the lender may hand the unpaid account to a third party whose job is to seek payment. What stage belongs in the blank?

After his debts become unmanageable, Luis files a petition in federal court asking to have the debts he cannot repay reduced or wiped out. What process has he begun?

Priya pays a card bill 35 days late, and the issuer reports the late payment. Which credit-report factor can this harm?

Nia defaults on a secured auto loan after repeated missed payments. What can the lender potentially do under the loan contract?

Use the diagram. After the lender charges off the debt, which statement about the debt is true?

A creditor assigns Maya's overdue account to a collection agency. What may be a consequence?

Ana's card balance is $500 with a $40 minimum due. She misses the payment, the agreement adds a $30 late fee, and no interest is charged this cycle. What is her new balance?

A collector wins a judgment over an unpaid debt and, subject to applicable law, arranges for part of the debtor's paycheck to be sent directly to the collector each pay period. What is this action called?

A loan contract includes an acceleration clause. After the borrower defaults, what can the lender demand under that clause?

Under the Fair Debt Collection Practices Act, a debt collector calls Ana at 10:30 p.m. local time. How should this contact be described?

A debt collector tells Omar, “Pay today or you will be arrested,” even though no lawful basis exists for that claim. What practice is this?

A collector knows that Keisha's employer forbids personal collection calls at work but calls her there anyway. What does the FDCPA generally say?

Within 30 days of receiving a validation notice, Evan disputes the debt in writing. Until the collector sends verification, what must it generally do?

A collector asks Zoe's neighbor for Zoe's address and phone number. Which action is permitted when seeking location information?

A collector calls Raj many times each day solely to annoy him. How does the FDCPA treat this conduct?

Cam considers Chapter 7 bankruptcy. If the court allows it, what tradeoff can occur with nonexempt property?

Darius has regular income and wants a court-approved plan to repay debts over time. Which bankruptcy chapter is generally designed for that?

Why can bankruptcy make borrowing more difficult afterward?

Which obligation is generally not eliminated by a bankruptcy discharge?

After filing bankruptcy, a borrower wants relief from collection pressure. Which statement best describes the tradeoff?