Glossary of Loan Terminology
Every form of property owned by a debtor.
A stay imposed by the court when a bankruptcy is filed that prevents creditors from taking collection actions against the debtor.
When a debtor who owes more than his or her assets relieves the debts by transferring his or her assets to a trustee and is relieved of the future obligation to repay unsecured debts.
This is a type of bankruptcy in which a debtor’s assets are liquidated to satisfy credit obligations, which are removed at the completion of bankruptcy.
This type of bankruptcy allows a person to retain assets in exchange for making reduced payments in accordance to a trustee-approved plan.
An item of value that guarantees payment of debt or may be collected in place of payment.
A third party agency creditors use to collect debt. Sometimes a collection agency is a company set up by the creditor to collect debt. Also called a Credit Agency.
Also called a “credit report,” a factual record of an individual’s credit payment history. Its main purpose is to help a lender quickly and objectively decide whether to give the consumer credit. A credit report is used to develop a credit score, but does not contain the score itself.
consumer reporting agencies (CRA)
Companies that gather and sell information about where a consumer works and lives, how they pay their bills, and whether they’ve been sued, arrested, or filed for bankruptcy. The most common type of CRA is a credit bureau. The information CRAs sell about the consumer to creditors, employers, insurers, and other businesses is called a Consumer Report or a Credit Report.
A person who officially undertakes responsibility for a loan in the event of the borrower’s default.
A third party agency creditors use to collect debt. Sometimes a credit agency is a company set up by the creditor to collect debt. Also called a Collection Agency.
Private, for-profit companies that gather information about a consumer’s credit history and sell it to banks, credit card companies, landlords, employers, and other interested parties.
credit counseling service
Companies that provide debt management plans and budget counseling, usually in return for fees.
A record based on information supplied over time by creditors with whom consumers have done business. This information is reflected in a credit report.
A person or business who extends credit and to whom money is owed.
Also called a Consumer Report, a factual record of an individual’s credit payment history. Its main purpose is to help a lender quickly and objectively decide whether to grant a consumer credit. A credit report is used to develop a consumer’s credit score, but does not contain the score itself.
Credit scores provide a numerical representation of a consumer’s credit at a given point in time. Credit scores are calculated using data contained in a consumer’s credit report. The score assesses the likelihood that a borrower will repay a loan or credit card
The total amount of money the consumer owes.
debt management plan
A plan that helps consumers repay their debts and helps creditors collect the money owed them. Usually put together by a Credit Counseling Agency.
Someone who uses credit cards, owes money on a personal loan or is paying on a home mortgage.
Someone who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.
Occurs when a borrower fails to repay a debt obligation in accordance with its terms.
A debt that can be eliminated in bankruptcy.
Property that is legally beyond the reach of creditors or a trustee.
The percentage a creditor charges on money borrowed.
An arrangement whereby a creditor gives a company or an individual money and arranges for them to pay it back on a timeline, usually with interest.
A debt that cannot be eliminated in bankruptcy.
The document that initiates a bankruptcy case.
Debts linked to collateral. The collateral guarantees payment of the debt, or the creditor has a right to take the collateral. Secured debt is most commonly used when purchasing homes or cars.
A trustee is appointed in Chapter 7 and Chapter 13 bankruptcy cases to review the debtor’s schedules, manage payments, and generally represent the interests of the creditors in the bankruptcy case. The role of the trustee is different under different bankruptcy chapters.
Debts with no collateral. Commonly used with credit cards, doctors’ bills, student loans, personal loans or rent.