overindebtedness
Too much owed
Overindebtedness is the state of owing more than one can reasonably repay—debt levels that exceed a person's or entity's capacity to service them.
The term appears in discussions of consumer protection, bankruptcy law, and financial crises: Predatory lending contributed to widespread household overindebtedness.
Unlike simple indebtedness, overindebtedness implies a threshold has been crossed where repayment becomes unsustainable.
Legal status when insolvent
- insolvencyInability to pay debts
- liquidationSelling assets for cash
- receivershipCourt-ordered asset management
- foreclosureLender seizes mortgaged property
restructuring · creditors · trustee · discharge · petition · administration · winding up · adjudication
Combining into unified whole
- refinancingReplacing a loan
- payment planArranged installment schedule
- forbearancePatient self-control, delayed enforcement
- settlementResolved dispute or colony
write-off · jubilee · moratorium · grace period · financial literacy · budgeting · credit counseling · fresh start
Persistent apprehensive distress
- desperationUtter loss of hope
- hopelessnessState without hope
- sleeplessnessInability to rest
- shamePainful awareness of failure
fear · dread · panic · overwhelm · distress · creditor harassment · stigma · isolation
Criminal or neglectful behavior
- nonpaymentFailure to settle debts
- arrearsOverdue financial obligations
- missed paymentsDebts not settled on time
- repossessionCreditor seizing collateral
late fees · collection agency · charge-off · default notice · credit damage · payment default · garnishment · past due
Overwhelming in intensity
- overwhelmingIntensely excessive in force
- suffocatingDepriving of air
- unmanageableImpossible to control
- cripplingCausing severe impairment
unsustainable · mounting · spiraling · inescapable · millstone · albatross · vicious cycle · drowning
bankruptcy
Legal status when insolvent
- insolvencyInability to pay debts
- liquidationSelling assets for cash
- receivershipCourt-ordered asset management
foreclosure · restructuring · creditors · trustee · discharge · petition · administration · winding up · adjudication · proceedings
consolidation
Combining into unified whole
- refinancingReplacing a loan
- payment planArranged installment schedule
- forbearancePatient self-control, delayed enforcement
settlement · write-off · jubilee · moratorium · grace period · financial literacy · budgeting · credit counseling · fresh start
anxiety
Persistent apprehensive distress
- desperationUtter loss of hope
- hopelessnessState without hope
- sleeplessnessInability to rest
shame · fear · dread · panic · overwhelm · distress · creditor harassment · stigma · isolation · depression
delinquency
Criminal or neglectful behavior
- nonpaymentFailure to settle debts
- arrearsOverdue financial obligations
- missed paymentsDebts not settled on time
repossession · late fees · collection agency · charge-off · default notice · credit damage · payment default · garnishment · past due · seizure
crushing
Overwhelming in intensity
- overwhelmingIntensely excessive in force
- suffocatingDepriving of air
- unmanageableImpossible to control
crippling · unsustainable · mounting · spiraling · inescapable · millstone · albatross · vicious cycle · drowning · sinking
overindebtednesssolvency
Capacity to pay debts
financial health · financial stability · creditworthiness · financial security · economic stability
over, debt, debts, debtor, debtors, indebted, indebtedness, debit, debits