Bankruptcy and Debt Archives - Page 2 of 2

Forbearance

January 25, 2015 by: Content Team

A forbearance is an agreement between a private party borrower and a lender in which the borrower is allowed to postpone payments temporarily due to financial or other hardship. While a loan is in forbearance, the interest on the amount continues to accrue, which increases the amount of the loan, or the amount of payments due when the forbearance comes […]

Automatic Stay

January 8, 2015 by: Content Team

An automatic stay in the United States relates to bankruptcy law. The stay is an automatic injunction that halts any action by creditors once a person formally files a bankruptcy petition. This means that the creditors must stop trying to collect debts from a debtor that has declared bankruptcy. An automatic stay remains in effect until the debtor receives a […]

Lien

January 4, 2015 by: Content Team

The right to maintain possession of property belonging to an individual until such time as a debt has been repaid is referred as a “lien.” A lender, service person, or other entity may place a lien against a piece of real or personal property to ensure they do not suffer a financial loss should the individual fail to pay. The […]

Foreclosure

November 24, 2014 by: Content Team

Foreclosure is the legal process that involves taking possession of property when a loan borrower fails to make payments to the lender. The lender takes possession of the property and attempts to sell it in order to recover the amount owed by the borrower. Mortgage lenders and lien holders are required to follow certain legal guidelines in order to start […]

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