| A | B |
|---|
| unsecured debt | A debt based only on the oral or written promise of the debtor |
| pledgor | A debtor who voluntarily gives up possession of the property |
| mechanic's lien | A lien that allows a person who has not been paid for services to retain possession of the item to be serviced until they are paid |
| surety | A third party who promises to be liable in case of default by the principal debtor |
| artisan's lien | A lien that allows a person who has not been paid for labor to build a house or building to file a legal claim against the property |
| lien | Gives the creditor the right to sell a specific property in the case of default on a payment and use the proceeds to pay the debt |
| pawn | A pledge of tangible personal property, usually of small size and comparatively high value |
| suretyship | A contractual relation in which a third party agrees to be primarily liable for the debt if payment becomes overdue |
| pledgee | A creditor who gets possession of the property |
| principal debtor | A person who owes the debt or obligation in a suretyship |
| garnishment | The process of receiving a portion of the debtor’s wages directly from the debtor’s employer |
| finance charge | The total added cost when one pays in installments for goods and services |
| credit rating | Reflects the evaluation of one's ability to pay debts |
| bankruptcy | Legal proceedings discharging debts and distributing assets |
| voluntary bankruptcy | Option that offers a person, business, or other associations protection from creditors under Chapter 7 |
| involuntary bankruptcy | Occurs when a person or business owes at least $11,625 to petitioning unsecured creditor(s) and are unable to pay debts when they come dueinsolvent, Status of being unable to pay debts when they become due |
