Question

-List some types of debts that are not affected by the discharge of a bankrupt debtor

-What are the main goals of the Fair Credit Reporting Act (FCRA)? Under what conditions is this act not applicable?

Answer 1

Bankruptcy discharge will release a debtor from personal liability in some types of debts which includes credit card, personal loans, medical bills etc. The debts that are not affected by Discharge includes Child support, alimony payments, debt due to malicious destruction, student loans etc cannot be discharged. Also any debt that has not been listed in Bankruptcy cannot be discharged.

FCRA comes under federal law which is intended to regulate customers credit information. It provide rules and guidelines on how federal agencies can collect information and share infor about customers. FCRA also provide clarification on who all can view the credit inforamtion and under what all circumstances. For example; an insurance company can view their prospective customer credit information only if they apply for an insurance policy, The government can request the same in terms of a court order or issuing of license etc. FCRA is intended to promote a level of fairness, provide accurate information by giving prior importance of the privacy of the customers while dealing with credit informations.

FCRA is not applicable in cases where national security is under threat and investigations carried by national agencies, underwriting of insurances for a very high claim amount etc.