personal bankruptcy
Individual debt discharge
Personal bankruptcy is a legal process in which individuals declare themselves unable to pay their debts, seeking court protection from creditors.
In the United States, Chapter 7 liquidates assets to pay debts while Chapter 13 establishes a repayment plan.
Filing for personal bankruptcy damages credit scores but offers a path to financial recovery: After the medical bills piled up, they had no choice but to file for personal bankruptcy.
Release of substance outward
- debt forgivenessCancellation of amounts owed
- settlementResolved dispute or colony
- restructuringRearranging an existing framework
- consolidationCombining into unified whole
write-off · elimination · liquidation · negotiation · resolution · fresh start · reprieve · moratorium
Opportunity to restart unburdened
- second chanceRenewed opportunity after failure
- rebuildingConstructing anew after destruction
- new beginningChance to start again
- financial literacyComprehension of monetary matters
budgeting · savings · debt-free · financial planning · recovery · reinvention · empowerment · money management
Unable to pay debts
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
- repossessionCreditor seizing collateral
- creditorsThose owed payment
unpaid bills · collection agencies · financial distress · cash flow problems · arrears · overextended · debtors · garnishment
Formal written appeal
- filingStoring documents systematically
- courtTrial venue or sports surface
- trusteeOne managing another's assets
- means testEvaluation of financial eligibility
Numerical measure of borrower reliability
- credit reportRecord of borrowing behavior
- creditworthinessAbility to repay debts
- credit historyRecord of past borrowing
- credit utilizationBorrowed portion of limit
loan denial · interest rates · hard inquiry · FICO score · credit monitoring · secured credit card · credit freeze · subprime
Painful awareness of failure
- stigmaMark of dishonor
- humiliationLoss of dignity
- embarrassmentSelf-conscious unease
- guiltMoral self-reproach
judgment · taboo · stress · anxiety · relief · fear · depression · isolation
discharge
Release of substance outward
- debt forgivenessCancellation of amounts owed
- settlementResolved dispute or colony
- restructuringRearranging an existing framework
consolidation · write-off · elimination · liquidation · negotiation · resolution · fresh start · reprieve · moratorium · clearance
fresh start
Opportunity to restart unburdened
- second chanceRenewed opportunity after failure
- rebuildingConstructing anew after destruction
- new beginningChance to start again
financial literacy · budgeting · savings · debt-free · financial planning · recovery · reinvention · empowerment · money management · emergency fund
insolvent
Unable to pay debts
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
- repossessionCreditor seizing collateral
creditors · unpaid bills · collection agencies · financial distress · cash flow problems · arrears · overextended · debtors · garnishment · overdue
petition
Formal written appeal
- filingStoring documents systematically
- courtTrial venue or sports surface
- trusteeOne managing another's assets
means test · exemptions · schedules · credit counseling · repayment plan
credit score
Numerical measure of borrower reliability
- credit reportRecord of borrowing behavior
- creditworthinessAbility to repay debts
- credit historyRecord of past borrowing
credit utilization · loan denial · interest rates · hard inquiry · FICO score · credit monitoring · secured credit card · credit freeze · subprime
shame
Painful awareness of failure
- stigmaMark of dishonor
- humiliationLoss of dignity
- embarrassmentSelf-conscious unease
guilt · judgment · taboo · stress · anxiety · relief · fear · depression · isolation · overwhelm
- bankruptcyChapter 11, Chapter 7, insolvency, Chapter 13, discharge
personal bankruptcyfinancial solvency
Ability to pay debts
financial security · financial stability · financial independence · financial health · affluence
personal, person, persons, personally, personable, personhood, personify, personification, impersonal