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CHAPTER 6 ACTIVITY Objective The purpose of this activity is for students to construct a plan that consumers could use to reduce or better manage excessive debt and is an alternative to filing bankruptcy.
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How to fill out pro rata debts?

01
Start by gathering all the relevant information regarding the debts and the parties involved.
02
Calculate the total debt amount and determine the proportionate share of each party.
03
Allocate the debts proportionally based on each party's share. This can be done by dividing the total debt amount by the sum of the shares and multiplying it by each party's share.
04
Document the allocated debt amounts for each party in a clear and organized manner.
05
Communicate the allocated debts to the parties involved, ensuring that they understand their respective obligations.
06
Regularly update the debt allocation as necessary, especially if there are changes in the total debt amount or the share of any party.

Who needs pro rata debts?

01
Individuals who jointly owe a debt and want to distribute the responsibility fairly among all the parties.
02
Businesses or organizations that have multiple shareholders or partners with varying ownership stakes and want to allocate debts in proportion to their ownership.
03
Investors or lenders who have multiple borrowers or debtors and want to distribute the repayment obligations fairly among them according to their respective shares.
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Pro rata debts refer to debts that are divided among multiple parties based on their proportionate share.
Any party who owes or is owed a portion of a debt that is being divided pro rata is required to file pro rata debts.
To fill out pro rata debts, you must list the total debt amount, calculate each party's proportionate share, and allocate the debt accordingly.
The purpose of pro rata debts is to ensure fair distribution of debts among multiple parties based on their respective obligations.
Pro rata debts must include the total debt amount, each party's share of the debt, and any relevant terms of repayment.
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