Page 91 - Book1E

borrower owes. The borrower is responsible for paying the deficiency balance.
Discharge: To relieve of obligation. Used in bankruptcy court to describe the process of eliminating a debtor’s financial obligation.
Foreclosure: The right of a creditor with a lien on your home, e.g., mortgage lender, builder, IRS, to force the sale of your home to recover money you owe.
Garnishment: Payment to a creditor deducted directly from your paycheck. Garnishments can be up to 25% of what you earn. In most cases, a creditor must have a court order or judgment before your paycheck can be garnished.
Installment contract: Written agreement in which a borrower agrees to pay for goods or services in regularly scheduled payments.
Judgment: The court decision pertaining to a lawsuit.
Lien: Notice a creditor can have attached to property you own which notifies anyone inquiring about the property that the
creditor must be paid in full before the property can be released.
Non-dischargeable debt: Debt that cannot be eliminated through bankruptcy proceedings. This includes some types of IRS debt, student loans, child support, and some judgments.
Non-exempt property: Property you are at risk of losing if a creditor obtains a judgment against or if you file for bankruptcy.
Old debt: Debt that is charged off by a creditor, usually accounts that have not had purchase or payment activity for more than two years.
Postdated check: A check written with a date in the future. This is usually done when the check writer does not have sufficient funds to cover the check on the day it is written.
Glossary
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