Consumer Bankruptcy

Definition

• A bankruptcy case that is filed to reduce or erase debts that are primarily consumer debts.

Synonyms
loss, nonpayment, uncontrollable debt, exhaustion, consumer default, overdrawn

Related Terms and Acronyms

• Bankruptcy (BK) — Acronym, Important,
  • A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
• Consumer Credit Service (CCS) — Acronym,
  • A service that offers counselling about how to work out a realistic budget and debt repayment plan and work with creditors. The goal is to ensure that debts are paid back over time.
• Consumer Debt — Definition,
  • Debts incurred for personal, as opposed to business, needs.
• Receivership — Definition,
  • A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.