Legal Jargon for Debt Reduction
In the world of debt reduction there are some terms that are not well known. This article provides definitions of some terms that relate to debt reduction and to bankruptcy.
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Fair Debt Collection Practices Act
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The Fair Debt Collection Practices Act (FDCPA) is an act that protects consumers from abuses by debt collectors. It prohibits debt collectors from communicating a debt to third parties, abusing or harassing creditors, contacting creditors who are known to be represented by an attorney, and many other practices.
The Fair Credit Reporting Act
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The Fair Credit Reporting Act (FCRA) regulates the use, collection and dissemination of credit information by the credit reporting agencies, companies who provide them with information and companies that use this information.
Equity Exemptions
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Equity exemptions are exceptions provided by state and federal law that allow a debtor to set aside certain amounts of certain types of property to protect them from creditors' claims.
Secured Property
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Property is said to be secured if the creditor has a lien on that property. A common example is a mortgage on a home.
Automatic Stay
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In bankruptcy, the automatic stay is the rule that once a debtor files for bankruptcy creditors are automatically forbidden from contacting him or her to collect that debt.
Discharge
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In bankruptcy, the discharge is the release of responsibility for certain debts that were previously owed by the debtor.
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