A Proposal to Creditors Is Used by an Insolvent Debtor

question 135

Multiple Choice

A proposal to creditors is used by an insolvent debtor having difficulty meeting payments

• A)and must be rejected by creditors within 45 days, or it will be deemed to be accepted.
• B)will remain on the credit bureau report for seven years after terms have been met.
• C)only when total debt is less than $100 000.
• D)so that the creditors may avoid filing for bankruptcy.

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Definitions:

Clustering

The method of categorizing a collection of items so that those within the same category are more alike to each other than they are to items in different categories.

Preferred Provider Organization

Preferred Provider Organization (PPO) is a type of health insurance plan that offers a network of healthcare providers, allowing policyholders to receive services at a discounted rate.

Health Maintenance Organization

A type of health insurance plan that typically restricts patients to a network of doctors and hospitals in order to control costs.

Exclusive Provider Organization

A managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plan’s network, except in an emergency.