If a Debtor Defaults on the Minimum Payment of a Credit

question 47

Multiple Choice

If a debtor defaults on the minimum payment of a credit contract,all states would allow the creditor to:

• A) impose a late charge.
• B) garnish wages if there is a court proceeding to enforce the collection of a judgment.
• C) Both of these.
• D) None of these.

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Definitions:

Primarily Rental

Describes a property used mainly for rental purposes, affecting its tax treatment and eligible deductions.

Primarily Personal

A classification often used in taxation to describe expenses or activities that are mainly for personal benefit and not business or trade related, affecting their deductibility.

Self-Employment Income

Self-Employment Income is money earned from carrying out business activities or providing services as an independent contractor, rather than as an employee.

Advance Rental Payments

Prepayments of rent, often required by landlords, accounted for before the period of use or occupancy.