debt arbitration - Iindustry created around the practice of debt
settlement. Debt arbitrators are third-party institutions that
work on behalf of their clients to negotiate out-of-court settlements
for old bills, invoices, lawsuits, liens, medical bills, utility
bills, judgements, and other types of significant debt. Typically,
debt arbitrators are in lieu of credit counseling as a way
to avoid bankruptcy.
debt cancellation - Release of a debt without consideration by a creditor.
debt collection - Usually performed by a collection
agency. the term collection agency is usually applied to third-party
agencies, called such because they were not a party to the original
contract.
debt collection negotiations - See debt
settlement
debt collector -
A person who works in the in-house collections department of
an original creditor or a collection agency to track down debtors
and get them to pay what they owe. Debt collectors can be relentless,
often using scare tactics, humiliation and repeated phone calls
to extract payments or promises to pay.
debt consolidation - The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. also called consolidation loan.
debt consolidation risks - Debt consolidation
can solve some terminal credit situations but that is mainly
because things couldn't
be worse. Debt Consolidation can be very risky, if you are not
careful enough when selecting your debt consolidation agency
and you don't control the things they do with your finances,
you may end up in a worse situation than when you started. See Debt
Settlement FAQs
debt consolidation vs debt settlement - See Debt
Settlement FAQs
debt counseling - Debt Counseling is the same as credit counseling. Debt Counseling is a process offering education to consumers about how to avoid incurring debts ...
debt counseling
service - Also referred to as a Credit Counseling
Service or Consumer Credit Counseling Service (CCCS).
debt elimination - Debt Elimination is a process that involves disputing debts and the validity of them. Debt Elimination allows both the debtor and the creditor to ...
debt financing - Financing by selling bonds, bills or notes to individuals or institutions.
debt settlement -
Debt settlement involves negotiating with a creditor or creditors
to pay off a percentage of your total debts at an agreed upon
settlement amount.
debt settlement answers
(faqs)
debt-to-income ratio - DTI -
A figure that calculates how much of a person's income is spent
paying his or her debts. The higher one's debt to income ratio,
the more of their monthly income that is solely devoted to paying
back debts. DTI is important to manage, because it is something
often considered by institutions when they evaluate loan creditworthiness;
institutions conclude that if a person's DTI is too high, they
might not be able to pay back their debts very easily, and the
institution will be less inclined to make the loan. Formula:
monthly debts owed divided by monthly income.
debtor - The debtor is the entity ( person, partnership or
corporation) who is liable for debts, and who is the subject
of a bankruptcy case.
debtor in possession - In a Chapter 11 case, the debtor usually
remains in possession of its assets and assumes the duties of
a trustee. The debtor in possession is a fiduciary for the creditors
of the estate, and owes them the highest duty of care and loyalty.
denial of discharge - Penalty for debtor
misconduct with respect to the bankruptcy case or creditors as
a whole. The grounds on which the debtor's discharge may be denied
are found in 11 U.S.C. 727. When the debtor's discharge is denied,
the debts that could have been discharged in that case cannot
be discharged in any subsequent bankruptcy. The administration
of the case, the liquidation of assets and the recovery of avoidable
transfers, continues for the benefit of creditors.
discharge - The legal elimination of debt through a bankruptcy
case. When a debt is discharged, it is no longer legally enforceable
against the debtor, though any lien which secures the debt may
survive the bankruptcy case.
dischargeable - Debts that can be eliminated in bankruptcy.
Certain debts are not dischargeable; that it, they may not be
discharged through bankruptcy or may only be discharged through
Chapter 13. Family support and criminal restitution are examples
of debts which cannot be discharged. Debts incurred by fraud
can only be discharged in Chapter 13.
dismissal - The termination of the case without either the entry of a discharge or a denial of discharge; after a case is dismissed, the debtor and the creditors have the same rights as they had before the bankruptcy case was commenced. Dismissal is the penalty for many essentially minor infractions of bankruptcy procedures under the 2005 amendments.
domestic support obligation - Debts for alimony, maintenance
or support owed to child, spouse or governmental entity that
paid for the support of the child or spouse. A new term introduced
by the bankruptcy amendments of '05.
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