ability to pay - A borrower's capability of meeting his/her current and future debt obligations.
accelerated payments - A term associated with making additional unscheduled payments on a loan at predetermined, or random intervals. Making additional unscheduled payments reduces the principal balance of the loan, meaning that more principal and less interest is paid off in subsequent payments. Making accelerated payments will lead to the early pay-off of a loan.
account balance - The amount of money in an
account, equal to the net of credits and debits at that point
in time for that account.
accounts receivable - Money which is owed to a company by a customer for products and services provided on credit. This is treated as a current asset on a balance sheet. A specific sale is generally only treated as an account receivable after the customer is sent an invoice.
accumulation period - For the purpose of debt settlement, period during which a client makes previously agreed-upon monthly deposits into their designated "savings" account.
accumulation plan - also referred to as Cash Accumulation Plan
adversary proceeding - A lawsuit filed in the bankruptcy court
which is related to the debtor's bankruptcy case. Examples are
complaints to determine the dischargeability of a debt and complaints
to determine the extent and validity of liens.
annuities - any recurring periodic series of payments.
assets - Assets are every form of property that the debtor owns.
They include such intangible things as business goodwill; the
right to sue someone; or stock options. The debtor must disclose
all of his assets in the bankruptcy schedules; exemptions remove
the exempt assets from property of the estate.
automatic stay - The injunction issued automatically upon the
filing of a bankruptcy case which prohibits collection actions
against the debtor, the debtor's property or the property of
the estate. See Relief from Stay on terminating the injunction.
avoidance - The Bankruptcy Code permits the debtor to eliminate
(avoid) some kinds of liens that interfere with (or impair) an
exemption claimed in the bankruptcy. Most judgment liens that
have attached to the debtor's home can be avoided if the total
of the liens (mortgages, judgment liens and statutory liens)
is greater than the value of the property in which the exemption
is claimed. This is sometimes called "lien stripping."
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