cancellation of debt - Release of a debt without consideration by a creditor.
chapter
11 bankruptcy - A reorganization proceeding
in which the debtor may continue in business or in possession
of its property as a fiduciary. A confirmed Chapter 11 plan
provides for the manner in which the claims of creditors
will be paid in whole or in part by the debtor.
chapter 12 bankruptcy - A simplified reorganization plan for
family farmers whose debts fall within certain limits.
chapter
13 bankruptcy -
A repayment plan for individuals with debts falling below statutory
levels which provides for repayment of some or all of the debts
out of future income over 3 to 5 years.
chapter
7 bankruptcy - The most common form of bankruptcy;
a Chapter 7 case is a liquidation proceeding, available to
individuals, married couples, partnerships and corporations.
charged off - This is an accounting term that means the creditor
does not expect to collect on the debt. It relates to the creditor's
taxes. It starts time periods under the Fair Credit Reporting
Act. It does not mean that the debt is no longer legally enforceable.
collateral - The property which is subject to a lien. A creditor
with rights in collateral is a secured creditor and has additional
protections in the Bankruptcy Code for the claim secured by collateral.
The measure of the secured claim is the value of the collateral
available to secure the claim - it is possible to have a lien
on property that is subject to a senior lien or liens such that
the security available to pay the claim is really without value
to the junior creditor. The general rule with respect to liens
is "First in time, first in right."
confirmation - The court order which makes the terms of the
plan for repayment of debts in a Chapter 11, 12 or 13 binding.
The terms of the confirmed plan replace the prepetition rights
of the debtor and creditor.
confirmed - A plan of reorganization in Chapter 11, 12 or 13
approved by the court and binding on the parties is said to be
confirmed.
consumer debt - Debts incurred by an individual for personal,
family or household purposes. Taxes are not consumer debts; neither
are business loans. The means test only applies to those with
primarily consumer debt.
contingent - Used to describe debts that are not fixed in right
at the time, but are dependent on some other event happening
to fix the liability.
conversion - Cases under the Bankruptcy Code may be converted
from one chapter to another chapter; for example, a Chapter 7
case may be converted to a case under Chapter 13 if the debtor
is eligible for Chapter 13. Even though the chapter of the Code
which governs it changes, it remains the same case as originally
filed.
credit bureau - A credit bureau (U.S.) is a
company that collects information from various sources and provides
consumer credit information on individual consumers for a variety
of uses. This helps lenders assess credit worthiness, the ability
to pay back a loan, and can affect the interest rate and other
terms of a loan. Interest rates are not the same for everyone,
but instead can be based on risk-based pricing, a form of price
discrimination based on the different expected risks of different
borrowers, as set out in their credit rating. Consumers with
poor credit repayment histories or court adjudicated debt obligations
like tax liens or bankruptcies will pay a higher annual interest
rate than consumers who don't have these factors. Most consumer welfare advocates advise individuals to review their credit reports at least once per year, in order to ensure that the reports are accurate. Consumers can do so at no cost. They are entitled to a free annual credit report from each of the three nationwide consumer reporting agencies, Equifax, Experian and TransUnion.
credit enhancement - The process of reducing credit risk by requiring collateral, insurance, or other agreements to provide the lender with reassurance that it will be compensated if the borrower defaulted.
credit rating - A published ranking, based on detailed financial analysis by a credit bureau, of one's financial history, specifically as it relates to one's ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan.
credit repair - Credit repair is a three-part process. The first is obtaining and then fixing your credit report. The next is getting your finances organized in order to conquer debt. The final stage is then re-building your credit to the point where you are eligible for important secured loans such as a mortgage.
credit report - A
consumer credit report is a document containing a factual record
of an individual's credit payment history.
credit score - A measure
of credit risk calculated from a credit report using a standardized
formula.
credit settlement -
See Debt Settlement
credit solution -
See Debt Settlement
creditor - The person or organization to whom the debtor owes
money or has some other form of legal obligation.
|
