In commercial law, after-acquired property refers to any property acquired by a debtor subsequent to a security agreement. In bankruptcy law, it denotes property acquired by an individual following a bankruptcy filing, typically free from creditor claims.
The automatic stay is a provision in U.S. bankruptcy law that halts all collection activities, including litigation, repossessions, and foreclosures, immediately upon filing a bankruptcy petition.
Bankruptcy is the state of an individual or entity unable to pay off their debts. A court-ordered bankruptcy order leads to the liquidation of the bankrupt's assets to repay creditors.
A creditor is an entity that is owed money, either for goods or services provided or as a result of a loan. Creditors have a legal right to claim the owed amount from the debtor.
A debtor is an individual or entity that owes money to another party, typically referred to as a creditor. In bankruptcy or similar legal proceedings, a debtor is the subject on whom the actions are primarily focused.
Garnishment is a legal process by which a creditor seeks to obtain payment from a debtor by taking a portion of the debtor's wages or bank account funds. This is typically done through legal proceedings.
Group Credit Insurance is a coverage issued to a creditor on the lives of multiple debtors for outstanding loans. In the event of a debtor's death before repayment, the policy pays the remaining loan amount to the creditor. This type of insurance contract covers an entire group of debtors instead of individual policies for each debtor.
An IOU (phonetic abbreviation of 'I owe you') is a signed document acknowledging a debt and stating the amount owed. It is informal and less legally binding compared to other financial instruments such as promissory notes or bills of exchange.
An individual or firm that extends money to a borrower with the expectation of being repaid, usually with interest, creating debt in the form of loans. Lenders are paid off before stockholders in the event of corporate liquidation.
A moratorium provides critical financial relief in situations where debt repayment is hindered by economic or market crises, offering time for debtor recovery and maintaining market stability.
A pledge involves the deposit of personal property as security for a debt, typically entailing the delivery of goods by a debtor to a creditor until the debt is repaid. It is commonly defined as a lien or a contract that mandates the transfer of personal property only as security.
An arrangement wherein a creditor agrees to satisfy certain financial obligations of a borrower, provided the borrower agrees to reimburse the creditor.
