Attachment is a legal procedure that allows a creditor who has obtained a court judgment to secure payment from a debtor. This can include freezing money or property owed to the debtor by a third party and redirecting it to the creditor.
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.
Bad-debt recovery is the receipt of an amount, whether partially or in full, that had previously been written off as uncollectible. This often occurs after the debt has been removed from accounting records.
The term 'collection' has various meanings within the financial and banking sectors, including the presentation of negotiable instruments, debt collection, financial conversion of accounts receivable to cash, and a set of collectibles.
The time, expressed in days, weeks, or months, that it takes to obtain payment of a debt by a customer.
A commercial collection agency specializes in debt collection services for businesses, helping them recover past-due accounts from other businesses or clients.
A deadbeat is an individual or entity that neglects or intentionally avoids paying their bills for goods or services received, creating financial burdens for service providers and creditors.
Factoring is a financial transaction where a business sells its accounts receivable to a third party (factor) at a discount, providing the business with immediate working capital.
A Garnishee Order, now known as a Third-Party Debt Order, is a legal mechanism used to seize money directly from a debtor's bank account to satisfy a judgment debt.
A judgment creditor is a creditor who has obtained a legal judgment against a debtor, allowing the creditor to enforce collection of the debt owed. This status grants the creditor certain priority rights over other creditors and can extend the enforceability of the claim under the statute of limitations.
A judgment debtor is an individual or entity against whom a court has rendered a monetary judgment, obliging them to pay a specified amount to another party known as the judgment creditor.
A judgment lien is a claim upon the property of a debtor resulting from a court judgment, granting the creditor a legal right to seek the debtor's assets as compensation for unpaid dues.
Judgment proof refers to individuals from whom a creditor cannot collect money, even if there is a court order stating that a debt is owed. This status typically applies to people who are insolvent or whose wages or assets are protected by state law.
A Notice of Default is a formal letter sent to a party in default to remind them of their breach of contract, potentially including a grace period to rectify the default and outlining any penalties for failing to cure the default.
Repossession is the act by which a seller reclaims property from a buyer upon failure to fulfill payment obligations as stipulated in a contract.
A legal order made by a judge allowing a creditor to claim money directly from a third party holding funds for a debtor, such as a bank, until the court authorizes its release to the creditor.
