- A bankruptcy case that is filed to reduce or erase debts that are primarily consumer debts.
loss, nonpayment, uncontrollable debt, exhaustion, consumer default, overdrawn
Related Terms and Acronyms
- Bankruptcy (BK) — Acronym, Important,
- A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
- Consumer Credit Service (CCS) — Acronym,
- A service that offers counselling about how to work out a realistic budget and debt repayment plan and work with creditors. The goal is to ensure that debts are paid back over time.
- Consumer Debt — Definition,
- Debts incurred for personal, as opposed to business, needs.
- Receivership — Definition,
- A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.