Debt Relief:Definitions: Difference between revisions
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===Consolidation=== | ===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. | ||
===Bankruptcy=== | ===Bankruptcy=== | ||
Revision as of 21:44, 14 November 2004
Definitions and Common Terms
Garnishee or Garnishment
- A creditor can legally take money from a debtor's paycheck.
Sue or suit
- The creditor can take legal action to get the money owed
Liens
- The creditor can legally claim the property of the debtor until the debt is paid by placing a lien on the property
Liquidation
- A debtor may be legally ordered to sell all assets in order to settle debts.
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.
Bankruptcy
*Chapter 7
*Chapter 13