Debt Relief:Definitions: Difference between revisions

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*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.  
*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.  
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.
===Beacon or 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.
===Debt===
* Liability; money owed


===Debt Consolidation===
===Debt Consolidation===
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===Liquidation===
===Liquidation===
* A debtor may be legally ordered to sell all assets in order to settle debts.
* A debtor may be legally ordered to sell all assets in order to settle debts.
===Secured Credit===
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit.  Often times calling it a savings account for credit.  A limit is then placed on the credit issued for the amount of the deposit paid.


===Sue or suit===
===Sue or suit===
* The creditor can take legal action to get the money owed
* The creditor can take legal action to get the money owed
===Beacon or 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.
===Debt===
* Liability; money owed


===Unsecured Credit Card===
===Unsecured Credit Card===
* A credit card where a security deposit is not required to open the credit account.
* A credit card where a security deposit is not required to open the credit account.
===Secured Credit===
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit.  Often times calling it a savings account for credit.  A limit is then placed on the credit issued for the amount of the deposit paid.

Revision as of 20:34, 16 November 2004

Definitions and Common Terms

Debt Relief Home Page | Bankruptcy

Bankruptcy

  • Bankruptcy occurs when the federal system of statues and courts authorize insolvent individuals or businesses the ability to place their financial affairs under the bankruptcy court's control. When the debtor's exceed his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy.

The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy.

  • Chapter 7 bankruptcy-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.
  • Chapter 13 bankruptcy-is a court-ordered and approved repayment plan to your creditors.

Beacon or 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.

Debt

  • Liability; money owed

Debt 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. In most cases payments are lowered and interest rates are reduced

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.

Secured Credit

  • Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit. Often times calling it a savings account for credit. A limit is then placed on the credit issued for the amount of the deposit paid.

Sue or suit

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

Unsecured Credit Card

  • A credit card where a security deposit is not required to open the credit account.