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.
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.
Discharge in bankruptcy refers to the formal release of a debtor from the legal obligation to pay off all or a portion of their debt, typically following bankruptcy proceedings. It removes the debtor's liability for certain debts while providing a fresh financial start.
An estoppel certificate is a legal document by which the mortgagor (borrower) certifies that the mortgage debt is a lien for the amount stated. Subsequently, the debtor is prevented from claiming that the balance due differs from the amount stated.
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 interpleader is an equitable action initiated by a debtor who seeks court intervention to determine to whom a particular debt is owed among multiple claimants, without making a claim on the disputed property themselves.
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.
A ledger account is a record in a ledger where all the financial transactions pertaining to a specific person, item, or activity (such as a debtor or stock item) are documented.
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.
Prepackaged bankruptcy under Chapter 11 involves a pre-negotiated agreement between creditors and the debtor regarding the terms of reorganization before filing for bankruptcy.
A comprehensive document that outlines a debtor's assets, liabilities, and creditor details in the context of bankruptcy proceedings, essential for assessing financial status during insolvency.
Voluntary bankruptcy is a legal proceeding initiated by the debtor who files a petition of bankruptcy in the appropriate U.S. district court under the Bankruptcy Act. This process contrasts with involuntary bankruptcy, where creditors petition the court to declare the debtor insolvent.
