Creditors do have some recourse to collect when a debtor fails to pay a debt. They can attempt to repossess the collateral if the debt is backed by it, such as mortgages and car loans that are backed by houses and cars. The creditor can also take the debtor to court in an attempt to...
the bankruptcy court can discharge certain debts, but not all types of debt. Once a debt has been discharged, the creditor can no longer take action against the debtor, such as attempting to collect the debt
What is bankruptcy? Bankruptcy is the status of a debtor who has been declared by judicial process to be unable to pay his debts. Although sometimes
Bankruptcy is usually seen as such an extreme situation, mostly associated with a failing business being forced to close down than anything else. But as the
On this page, you'll find the legal definition and meaning of Debtor, written in plain English, along with examples of how it is used. What is Debtor? A person or company owing debt is a debtor. In legal proceedings the party declaring bankruptcy is the debtor. History and Meaning of...
Bankruptcy Rule 2004 is a federal rule that states that "On motion of any party in interest, the court may order the examination of any entity."1It's a relatively rare process, only used when concerns about problems or inconsistencies in a debtor's case are raised. ...
A bankruptcy discharge is a court order issued at the end of a Chapter 7 or Chapter 13 bankruptcy proceeding. The order relieves the debtor from any obligation to repay the debts that have been discharged. Key Takeaways A bankruptcy discharge effectively erases certain debts. Creditors can no ...
Abad debtis an amount which has been written off by the business as a loss, and categorized as an expense, because the debt owed to the business cannot be collected. This generally occurs when the debtor declares bankruptcy or when the cost of pursuing further action in an attempt of colle...
How Debt Affects Your Mental Health and Ways to Cope: Paying off debt can be a long-term endeavor if you have steep high-interest balances. But it’s important to keep things in perspective and take care of your health. What Is Auto Loan Refinancing?: Understand how refinancing your auto...
A bank account levy occurs when a creditor (a person or business owed a debt) instructs a bank to withdraw money from an account without the account holder's permission. The creditor will apply the funds toward the outstanding debt of the account holder or "debtor." Can a Bank Levy Take...