Debt Relief >> For People With Bad Credit

A legal declaration of one's inability to pay his/her creditors. In most cases, voluntary bankruptcy is initiated by the individual in debt (the debtor); in rare cases, creditors may file a bankruptcy petition against a debtor to initiate an involuntary bankruptcy.

The maximum amount that a lender or credit card company will lend a borrower on a particular loan or line of credit.

An estimate of the credit worthiness of an individual and his/her ability to pay back a loan or credit card. Credit rating is often measured by FICO score, among other factors.

Taking out a loan to pay off other smaller debts, usually on better payment terms than those offered by the smaller debts on the whole.

The failure to pay back a loan or a credit card balance.

The smallest amount of money an accountholder must pay by the due date to keep the account in good standing.

A financial institution taking back possession of an object that was either used as collateral on a loan or financed or leased by the institution. For instance, failure to pay a car loan results in the repossession of the car by the company that financed the loan.