A legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment

A declaration by a creditor (usually a credit card account) that an amount of debt is unlikely to be collected; occurs when a consumer becomes severely delinquent on a debt

An attempted recovery of a past-due credit obligation or debt by a collection department or agency

A U.S. government agency that helps protect consumers by regulating financial products and services, like mortgages, credit cards, and student loans

An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest

A record of a person's use of credit over time; 15% of your credit score is based on the length of your credit history

A detailed plan drawn up by a debt management company (DMC) and sent to an individual's creditors (entities they owe money). It groups several credit card debts into one payment, cuts your interest rate and creates a 3- to 5-year repayment plan.

Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score

A law that protects consumers from discrimination in the granting or denying of credit

A federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files

A government organization whose role is to protect consumers and competition by preventing anti-competitive, deceptive, and unfair business practices through law enforcement, advocacy, and education

The most commonly used credit score

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the property

The number of recently opened credit accounts and all new credit inquiries; 10% of your credit score is based on this

A history of the payments you have made on all credit you have obtained; 35% of your credit score is based on this

A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called wealth

The taking back of property after a borrower has defaulted on payments

A legal claim by a government entity to take an individual's property or income when their taxes are not paid in full

Money set aside for unanticipated expenses or loss of income