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Glossary of Terms Frequently Encountered in a Debt Settlement Program
1099-C - The tax form filed with the IRS, by a creditor, when they have forgiven $600 or more on a debt. IRS Website www.irs.gov.
Accrual - The amount that is added periodically as an increase: said esp. of interest on money Webster's new world dictionary
Admission - n. a statement made by a party to a lawsuit or a criminal defendant, usually prior to trial, that certain facts are true. An admission is not to be confused with a confession of blame or guilt, but admits only some facts. Law.com
Per annum - by the year; annually Law.com
Answer - 1. A formal, written statement by the defendant in a lawsuit, which answers each allegation contained in the complaint. www.id.uscourts.gov/glossary.htm. 2. A defendant's written response to a plaintiff's initial court filing (called a complaint or petition). Normally a defendant has 30 days in which to file an answer after being served with the plaintiff's complaint. In some courts, an answer is simply called a "response." Nolo law dictionary
Appearance - The act of coming into court as a party to a suit either in person or through an attorney. Application for service/service www.id.uscourts.gov/glossary.htm
Arbitration - The hearing of a dispute by an impartial third person or persons (chosen by the parties), whose award the parties agree to accept www.id.uscourts.gov/glossary.htm
Arbitration Award - v. to give a judgment of money to a party to a lawsuit, arbitration, or administrative claim. Example: "Plaintiff is awarded $27,000." www.id.uscourts.gov/glossary.htm
Arbitration Forum - n. a court which has jurisdiction to hold a trial of a particular lawsuit or petition. www.id.uscourts.gov/glossary.htm
Arbitration Notice - Formal notification to the party that has been sued in a civil case of the fact that the arbitration has been filed. Also, any form of notification of a legal proceeding. www.id.uscourts.gov/glossary.htm
Arbitration Response - (see answer)
Assets - the entire property of a person, association, corporation, or estate applicable or subject to the payment of debts Merriam-Webster Online Dictionary
Automated (emails etc) - To control or operate by automation The American Heritage® Dictionary of the English Language, Fourth Edition
Available Balance - Funds in the client's settlement account at the bank that are available for use in settling accounts. Funds become available for use 1 week after they are deposited in the settlement account.
Award - 1 to give by the decision of a law court or arbitrator - "the plaintiff was awarded damages" - Webster's New World Dictionary
Balance - the difference between the debit total and the credit total of an account. www.infoplease.com
Bank Authorization - A form completed by clients upon enrollment authorizing the electronic transfer of funds from their regular bank account to their settlement account and/or the electronic payment of TDS fees from their settlement account.
Levy - to seize property in order to satisfy a judgment: often with on - Law.com
Chapter 13 bankruptcy - The reorganization bankruptcy for consumers, in which you partially or fully repay your debts. In Chapter 13 bankruptcy, you keep your property and use your income to pay all or a portion of the debts over three to five years. The minimum amount you must pay is roughly equal to the value of your nonexempt property. In addition, you must pledge your disposable net income -- after subtracting reasonable expenses -- for the period during which you are making payments. At the end of the three-to five-year period, the balance of what you owe on most debts is erased. Nolo Law Dictionary
Chapter 7 bankruptcy - The most familiar type of bankruptcy, in which many or all of your debts are wiped out completely in exchange for giving up your nonexempt property. Chapter 7 bankruptcy takes from three to six months, costs $130 in filing fees and $45 in administrative fees, and commonly requires only one trip to the courthouse. Nolo Law Dictionary
Bonds - in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years. www.infoplease.com
Budget - 1. An estimate, often itemized, of expected income and expense for a given period in the future.
2. A plan of operations based on such an estimate.
3. An itemized allotment of funds, time, etc., for a given period. www.infoplease.com
CCC program - This is our abbreviation for the debt management service offered by Consumer Credit Counseling (CCC) agencies. This program usually involves reduction of interest rates and late fees but does not involve a reduction of the principal amount of the debt owed by the consumer. This can be an effective program for those who can afford the monthly payments required in such a program.
CCCS - Our abbreviation for Consumer Credit Counseling Service (see above)
Cease & desist letter -
Cease - to put an end to; discontinue The American Heritage® Dictionary of the English Language, Fourth Edition
Desist - to cease doing something; forbear: The American Heritage® Dictionary of the English Language, Fourth Edition
Letter - A written or printed communication directed to a person or organization The American Heritage® Dictionary of the English Language, Fourth Edition
When a collector is harassing a consumer, the consumer may send a letter demanding that the creditor cease and desist such activities. This can be an effective means of reducing the number of phone calls from collectors.
Charge off - A debt that is deemed uncollectible and written off. Also known as a bad debt. www.investopedia.com
Collection - The act or process of collecting. The American Heritage® Dictionary of the English Language, Fourth Edition
Collection Agency - See above for the definition of collection. The Webster's New World Dictionary defines Agency as: "the business of any person, firm, etc. empowered to act for another." Therefore a "Collection Agency" is a person or firm empowered to collect debts for another person or firm.
Complaint - Papers filed with a court clerk by the plaintiff to initiate a lawsuit by setting out facts and legal claims. To complete the initial stage of a lawsuit, the plaintiff's complaint must be served on the defendant, who then has the opportunity to respond by filing an answer. Nolo law dictionary
Compound interest - interest on borrowing and accrued interest: interest that is calculated on the combined total of the original sum borrowed (principal) and the interest it has already accrued. Encarta World Dictionary
Conference Hearing -
Conference - a meeting of two or more persons for discussing matters of common concern. www.meriamwebster.com
Hearing - n. any proceeding before a judge or other magistrate (such as a hearing officer or court commissioner) without a jury in which evidence and/or argument is presented to determine some issue of fact or both issues of fact and law. While technically a trial with a judge sitting without a jury fits the definition, a hearing usually refers to brief sessions involving a specific question at some time prior to the trial itself, or such specialized proceedings as administrative hearings. In criminal law, a "preliminary hearing" is held before a judge to determine whether the prosecutor has presented sufficient evidence that the accused has committed a crime to hold him/her for trial. www.law.com
Consent Judgment - a judgment issued by a judge based on an agreement between the parties to a lawsuit to settle the matter, aimed at ending the litigation with a judgment that is enforceable. www.law.com
Credit - COMMERCE pay-later system: an arrangement by which a buyer can take possession of something now and pay for it later or over time Encarta World Dictionary
Credit History - FINANCE somebody's credit track record: a record of how somebody has repaid loans, credit card bills, and other debts in the past, used as a guide for any conditions on lending to them again Encarta World Dictionary
Credit repair/Credit clean up - A service provided to consumers to assist them in getting inaccurate information removed from their credit reports. Companies providing this service charge a fee to the consumer.
Creditor - somebody owed money: a person or organization owed money by another Encarta World Dictionary
Collector - a person or thing that collects; specif., a) a person whose work is collecting taxes, overdue bills… Webster's New World Dictionary, Fourth College Edition
Debit - a charge against a bank deposit account. www.meriamwebster.com
1. recorded debt or expense: an entry showing a debt or expense in a record of accounts
2. sum of money deducted: an amount of money taken out of an account Encarta World Dictionary
Debtor - somebody or something that owes: somebody who or something that owes a debt Encarta World Dictionary
Default - failure to do something: a failure to meet an obligation, especially a financial one Encarta World Dictionary
Default Judgment - if a defendant in a lawsuit fails to respond to a complaint in the time set by law (commonly 20 or 30 days), then the plaintiff (suer) can request that the default (failure) be entered into the court record by the clerk, which gives the plaintiff the right to get a default judgment. …A defendant who fails to file an answer or other legal response when it is due can request that the default be set aside, but must show a legitimate excuse and a good defense to the lawsuit. www.law.com
Defendant - accused party: a person, party, or company required to answer criminal or civil charges in a court Encarta World Dictionary
Disclosure - the need in business transactions to tell the "whole truth" about any matter which the other party should know in deciding to buy or contract. www.law.com
Discovery -
1. LAW mutual disclosing of data or documents: the stage of a legal proceeding during which each side must provide data and documents to the other side. Encarta World Dictionary
2. LAW disc losable data and documents: data or materials that a party in a legal proceeding must disclose to another party before or during the proceeding. Encarta World Dictionary
Document Hearing -
Document a popular generic word among lawyers for any paper with writing on it. Technically it could include a piece of wood with a will or message scratched on it. www.law.com
Hearing n. any proceeding before a judge or other magistrate (such as a hearing officer or court commissioner) without a jury in which evidence and/or argument is presented to determine some issue of fact or both issues of fact and law. While technically a trial with a judge sitting without a jury fits the definition, a hearing usually refers to brief sessions involving a specific question at some time prior to the trial itself, or such specialized proceedings as administrative hearings. In criminal law, a "preliminary hearing" is held before a judge to determine whether the prosecutor has presented sufficient evidence that the accused has committed a crime to hold him/her for trial www.law.com
Typically, to begin arbitration, one party completes an arbitration claim form, files it with the arbitration administrator and pays a filing fee, if any. The other party responds.
In some systems, the parties can have a Document Hearing, where an arbitrator studies the paperwork or electronic documents submitted by each party, makes a decision and issues an arbitration award. http://www.arb-forum.com/arbitration/pdfs/How_arb_workds.pdf
Equity - FINANCE part of the value paid for: the value of a piece of property over and above any mortgage or other liabilities relating to it Encarta World Dictionary
Expense - money spent on something: the amount of money spent in order to buy or do something Encarta World Dictionary
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