Search by Keyword
Key Terms Relateds to Debt
A debt that cannot be collected, which is written … moreA debt that cannot be collected, which is written off as a loss against a lender's taxes. Debt must be charged off in three cases: if it is a certain number of days past due (120 days for a loan and 180 days for credit card debt), if the debt holder dies, or if the debt holder goes bankrupt.
A charged-off debt is not forgiven, though, and it stays on your credit report for 7 years. Lenders also generally sell charged-off debt to collection agencies who will attempt to recoup the debt through various means including lawsuit until its statute of limitations runs out, a time period that varies by state.
A charged-off debt is not forgiven, though, and it stays on your credit report for 7 years. Lenders also generally sell charged-off debt to collection agencies who will attempt to recoup the debt through various means including lawsuit until its statute of limitations runs out, a time period that varies by state.
Something of value that is pledged to pay off a lo … moreSomething of value that is pledged to pay off a loan or debt if payments aren't made according to the agreement. Also called security.
Mortgages and car loans are known as "secured" loans given that the underlying assets they are used to purchase (i.e. a house or a car) serve as collateral for the original loan. In other words, if a borrower does not make payments as originally agreed, the lender may be able to sell the aforementioned assets in order to recoup amounts owed.
Mortgages and car loans are known as "secured" loans given that the underlying assets they are used to purchase (i.e. a house or a car) serve as collateral for the original loan. In other words, if a borrower does not make payments as originally agreed, the lender may be able to sell the aforementioned assets in order to recoup amounts owed.
Violation of your terms and conditions agreement; … moreViolation of your terms and conditions agreement; failure to pay your loan / credit card as agreed.
The time during which you can pay your monthly cre … moreThe time during which you can pay your monthly credit card bill before interest begins to accrue. The Grace Period generally lasts for 20-30 days after your bill is assessed. Not all credit cards offer a Grace Period, and none do when you are revolving a balance, in which case purchases begin to incur interest immediately.
Be wary of credit cards that do not have a grace period (i.e. 0 days) because even if you pay your bill in full every month, you will accrue interest charges every day that you have a balance on the card.
Only purchases have a grace period. Cash Advances and Balance Transfers do not have a grace period and interest charges therefore get assessed immediately.
Be wary of credit cards that do not have a grace period (i.e. 0 days) because even if you pay your bill in full every month, you will accrue interest charges every day that you have a balance on the card.
Only purchases have a grace period. Cash Advances and Balance Transfers do not have a grace period and interest charges therefore get assessed immediately.
The ratio of credit spent to total available credi … moreThe ratio of credit spent to total available credit.
A legal procedure that allows businesses or certai … moreA legal procedure that allows businesses or certain individuals to to reorganize their debts under a court-approved plan while receiving protection from lawsuits brought by creditors during the reorganization period.
Chapter 11 bankruptcy essentially buys an individual or organization time to meet their financial obligations and provides for these debts to be paid over time. Debtors are often able to take out loans with favorable rates to pay off existing debts or cancel existing contracts in order to garner financial relief under Chapter 11 bankruptcy. If a companyâ??s debts exceed its assets, the ownersâ?? rights are transferred the companyâ??s creditors under this type of bankruptcy in order to satisfy the ownersâ?? financial obligations.
Chapter 11 is generally regarded as the most expensive and complex type of bankruptcy.
Chapter 11 bankruptcy essentially buys an individual or organization time to meet their financial obligations and provides for these debts to be paid over time. Debtors are often able to take out loans with favorable rates to pay off existing debts or cancel existing contracts in order to garner financial relief under Chapter 11 bankruptcy. If a companyâ??s debts exceed its assets, the ownersâ?? rights are transferred the companyâ??s creditors under this type of bankruptcy in order to satisfy the ownersâ?? financial obligations.
Chapter 11 is generally regarded as the most expensive and complex type of bankruptcy.
A type of bankruptcy that enables debtors to propo … moreA type of bankruptcy that enables debtors to propose a 3-to-5 year payment plan that provides for the repayment of existing debts over time using future income. As such, this type of bankruptcy is only for individuals with regular income and relatively low debt levels.
Under Chapter 13 bankruptcy, certain â??priority debts,â?? including child support, alimony, employee wages, and delinquent taxes, must be repaid in full. The repayment plan must also include oneâ??s regular payments on their principal dwelling and any delinquent amounts, while payments on other secured debts can be spread across the life of the payment plan. Only whatever disposable income is left over after making payments toward these aforementioned obligations will be put toward unsecured debts like medical payments and credit card balances.
Failure to repay your debt obligations in full results in your bankruptcy being classified as non-discharged, which means information about it will remain on your credit reports for 10 years. If you fulfill your obligations, your debt will be discharged, and bankruptcy information will only remain on your credit reports for 7 years.
Under Chapter 13 bankruptcy, certain â??priority debts,â?? including child support, alimony, employee wages, and delinquent taxes, must be repaid in full. The repayment plan must also include oneâ??s regular payments on their principal dwelling and any delinquent amounts, while payments on other secured debts can be spread across the life of the payment plan. Only whatever disposable income is left over after making payments toward these aforementioned obligations will be put toward unsecured debts like medical payments and credit card balances.
Failure to repay your debt obligations in full results in your bankruptcy being classified as non-discharged, which means information about it will remain on your credit reports for 10 years. If you fulfill your obligations, your debt will be discharged, and bankruptcy information will only remain on your credit reports for 7 years.
A type of bankruptcy in which most of someone's de … moreA type of bankruptcy in which most of someone's debts are forgiven as a result of the court-supervised liquidation of most of their assets. Assets are turned over to a court-appointed trustee who provides for their sale and then distributes funds to owed creditors based on certain priority rules.
A number of assets are exempt from liquidation under Chapter 7 bankruptcy, and while the exact list varies by state, it usually includes one's primary vehicle, clothing and furniture, tools used for business purposes, and at least some home equity. Similarly, some debts may not be discharged as a result of Chapter 7 bankruptcy, including student loans, child support, and certain taxes.
A number of assets are exempt from liquidation under Chapter 7 bankruptcy, and while the exact list varies by state, it usually includes one's primary vehicle, clothing and furniture, tools used for business purposes, and at least some home equity. Similarly, some debts may not be discharged as a result of Chapter 7 bankruptcy, including student loans, child support, and certain taxes.
Fancy term for saying that you are late on a loan … moreFancy term for saying that you are late on a loan or credit card payment.
Delinquency is measured in days, which correspond to the number of payments you have missed. That is why you'll sometimes hear "30 days delinquent" or "60 days delinquent", which would mean that you've missed one or two monthly payments, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Delinquency is not reported to the major credit bureaus and you therefore do not incur credit score damage as a result of it until you have missed two consecutive payments (i.e. you're at least 60 days delinquency). In order to return your account to good standing, you must make payments for the number of months behind you are, plus the current month.
Delinquency is measured in days, which correspond to the number of payments you have missed. That is why you'll sometimes hear "30 days delinquent" or "60 days delinquent", which would mean that you've missed one or two monthly payments, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Delinquency is not reported to the major credit bureaus and you therefore do not incur credit score damage as a result of it until you have missed two consecutive payments (i.e. you're at least 60 days delinquency). In order to return your account to good standing, you must make payments for the number of months behind you are, plus the current month.
A reorganization plan specifically for family farm … moreA reorganization plan specifically for family farmers or family fishermen with debts within a certain range. Chapter 12 bankruptcy requires a debtor to propose a plan that provides for the repayment of their creditors within three-to-five years. This plan may entail the restructuring of current debts, the waiver of defaults, and the liquidation of farming or fishing equipment.
Both individuals and corporations are eligible for Chapter 12 bankruptcy, though they must demonstrate that their majority of their income derives from farming or fishing.
Both individuals and corporations are eligible for Chapter 12 bankruptcy, though they must demonstrate that their majority of their income derives from farming or fishing.
Having borrowed more than one can afford to repay. … moreHaving borrowed more than one can afford to repay.
This term is used primarily in the context of business to describe a company that can no longer pay the interest on what it owes, but it can apply to personal finance as well. Consumers are said to be overleveraging themselves when they are using credit and/or loans to spend more than they bring in each month.
This term is used primarily in the context of business to describe a company that can no longer pay the interest on what it owes, but it can apply to personal finance as well. Consumers are said to be overleveraging themselves when they are using credit and/or loans to spend more than they bring in each month.
Also known as a "rainy day fund," an emergency fun … moreAlso known as a "rainy day fund," an emergency fund is money set aside as a type of financial safety net in case unexpected expenses or some other hardship occurs.
A brokerage account in which an investor uses secu … moreA brokerage account in which an investor uses securities and cash holding as collateral for a loan from their broker. The borrowed money is then used to increase the size of your investment beyond your liquid spending power in order to magnify the potential profits.
The funds lent to an investor in a margin account accrue interest at a 3% - 8% rate until it is repaid. And, if the combined value of your securities and cash position falls too low, your broker may require to repay some of your debt in whatâ??s known as a â??margin call.â??
The funds lent to an investor in a margin account accrue interest at a 3% - 8% rate until it is repaid. And, if the combined value of your securities and cash position falls too low, your broker may require to repay some of your debt in whatâ??s known as a â??margin call.â??
A three-part test that courts use to determine whe … moreA three-part test that courts use to determine whether a debtor deserves to have his or her student loans discharged in bankruptcy on the basis that repayment would impose an â??undue hardshipâ?? on the debtor and his or her dependents.