Debt Relief:Definitions

From LitWiki

Definitions and Common Terms

Bankruptcy

    *Chapter 7
    *Chapter 13

Consolidation

  • The process of combining all debt into one sum and having only one payment. This may be helpful when there are multiple credit cards with high interest rates. Consolidation is used in other circumstances as well.

Garnishee or Garnishment

  • A creditor can legally take money from a debtor's paycheck.

Insolvent

  • Unable to meet debts or discharge liabilities.

Liens

  • The creditor can legally claim the property of the debtor by placing a lien on the property until the debt is paid.

Liquidation

  • A debtor may be legally ordered to sell all assets in order to settle debts.

Sue or suit

  • The creditor can take legal action to get the money owed

Credit Score

  • Points kept on file by credit reporting agencies that indicate how much debt a person has; higher scores are ideal. Low scores indicate an unfavorable credit history.
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