| A | B |
|---|
| alimony | money paid by one former spouse to the other to help support after a divorce |
| bankruptcy | the legal act of asking a federal court to declare one unable to pay debts owed to creditors |
| child support | money paid to a former spouse to help support minor children |
| Consolidate | To combine two or more debts into one |
| Credit counseling service | An agency that has counselors to help with budgeting, negotiating with creditors, working with creditors to reduce debt and stop collection calls |
| discharged | term used to describe when debts are erased or forgiven |
| eviction | occurs when a renter must leave rental property for non-payment of rent |
| exempt | property that is protected from liquidation in Chapter 7 bankruptcy proceedings |
| foreclosure | the process a lender goes to take possession of a home because the borrower fails to pay the mortgage |
| garnishment | a court ruling that requires that money be deducted from a person's paycheck involuntarily in order to pay a debt |
| inquiry | when businesses contact the credit bureaus to get a person's credit report, when someone applies for new credit |
| judgment | a court ruling that requires a person to pay damages to another |
| lien | occurs when a creditor can take one or more of your personal possessions as security or in payment of a debt |
| liquidation | the act of selling one's personal possessions to repay debts |
| repossession | when the collateral for a secured loan is taken back by a lender due to non-payment of the loan |
