Glossary of acronyms and abbreviations :: Credit & Bankruptcy

[quest42]

• A.G. State Attorney General
• AU Authorized User
• BK7 - Chapter 7 Bankruptcy
• BK13 - Chapter 13 Bankruptcy
• BT - Balance Transfer.
• BT promo - A BT at a promotional rate.
• BTW By the way
• /bump/ used by someone when they are looking for an answer to the thread, but have not received one yet, and the thread itself is getting pushed back to the second page, where members are less likely to see/read it. Feel free to "bump" your post to the top by replying to your own message and typing /bump/ in the body of your reply.
• CA - Collection Agency
• CRA's - Credit Reporting Agency
• CAP 1 Capital One
• CC - Credit Card.
• CCC Credit Card Company
• CCCS - Consumer Credit Counseling Services.
• CE score - CreditExpert score.
• CRRR- Certified mail, Return Receipt Requested
• Citi Backdoor Double - Rapidly applying for multiple Citibank CC products with the intention of combining their CL's. No longer effective?
• CL - Credit limit.
• CLOAKING/SUPPRESSED - The CRA won't "EVER" let the information be put back on your report by the credit card or loan company or the collection agency.
• CO - charge off
• CRO Credit Repair Organization
• CW - Credit Watch, a monitoring service offered by Equifax
• deadbeat - What the ccc calls a customer who pays in full every month
• derog - Derogatory tradeline = an item on your credit file that is negative in any way.
• DH - Dear Husband
• DOLA Date of Last activity
• DV Debt Validation.
• EQ Equifax. Another CRA.
• EXP (or EX) - Experian. Another CRA.
• FCRA Fair credit Reporting Act
• FDCPA Fair Debt Collection Practices Act
• FICO score - Fair, Isaac Co. Also known as.... BEACON. 500's: You have a lot of work to do. 600's: You're not done yet. 700's: You're golden. 800's: You're God.
• FAKO generic credit score, not a true FICO. Not used by lenders.
• GC - Green Card from USPS Certified Mail receipt
• Goodwill letter - correspondence or letter to get late payments removed, due to some unfortunate event in your life that caused the late payments, from your current and positive tradelines.
• "Hard" Inquiry - Inquiry visible to others and counted in your credit score.
• IMHO - In My Humble Opinion
• Litigious Nutcase Letter - A letter written by PsychDoc that you can use to make yourself look like a lawsuit-happy whacko in an attempt to make paid collection/charge-off tradelines disappear for good! Best when notarized and sent via certified mail for maximum psychological effect (why do you think he's called PsychDoc?!?)
• IIB Included in Bankruptcy
• ITS - Intent To Sue
• JDB Junk Debt Buyer. Buys debts for pennies on the dollar and attmepts collection.
• LOC - Line of credit.
• LOL laughing out loud
• Mr Cooke - Cap One Representative. Works wonders for many people.
• MCK MyCredit Keeper, online credit reports.
• OC original creditor
• OT Off Topic
• PFB - Planetfeedback.com. A nifty site that will hold your hand through the process of writing an electronically submitted feedback letter to faceless corporations and optionally share them with the general public.
• PITA Pain In the A$$
• PG Privacy Guard. Provider of Online credit reports.
• PFD Pay For Delete. Offer of payment in exchange for removing negatives.
• PIF Pay In Full
• "R" a lender's Retention department.
• ROFLMAO! (rolling on the floor laughing my ass off)
• SOCK DRAWER - Where you put CC's that you won't be using for a while, for whatever reason, usually due to the CCC not playing nice.
• "Soft Inquiry" - inquiry not seen by others and not counted in your score
• SOL - Statute of Limitation: statutorily set maximum time periods during which lawsuits can be brought to enforce rights. After the time period set out in the applicable statute of limitations has run (expired), no legal action can be brought.
• TL = Tradeline - An entry in your credit history.
• TOY CARD - When a credit card company gives you an 80% lower credit limit, THAN YOUR CURRENT LOWEST CREDIT LIMIT...
• TU - Transunion. A CRA.
• UDF - Universal Data Form. Its the form that the subscribers (collectors, creditors, etc.) to the CRAs use to update/delete tradelines.
• WK - worthknowing.com - free TU credit report. No longer exists.

From various sources, including http://creditboards.com/forums/index.php?showtopic=32

[quest42]

Credit Report Account Ratings

Credit Report Account Ratings
I=Installment
R=Revolving
0 Too new to rate
1 Pays account as agreed
2 Not more than two payments past due
3 Not more than three payments past due
4 Not more than four payments past due
5 At least 120 days or more than for payments past due
7 Making regular payments under W.E.P. (wage earner plan)
8 Repossession
9 Bad Debt; placed for collection; a "skip"

--

[quest42]

FCRA compels credit bureaus.

FCBA compels original creditors.

FDCPA compels third party collectors.

That's a very over-simplified way to "map" it out in your mind.

Thanks to PsychDoc>

[Minnymouth]

GREAT THREAD, WITH LOTS OF GOOD INFO -

THANKS QUEST42

Minny

[Genenco]

Yes, very good

[StaciMM]

Good idea... A couple of others:

YMMV Your Mileage May Vary
(Everyone's credit file is different. What works for A may not work the same for B. If Joe applies for XYZ bank and they pull TU, that doesn't mean that XYZ bank will always pull TU. Peg might be approved for ABC Store card w/ a FICO of 620 while Mary is turned down with a score of 640.)

B or Bumpage
Getting rid of inquiries on Transunion or Equifax by subscribing to a service that allows you to pull your own credit report(s) every day. TU & EQ have a limited amount of space in your file to store inquiries, so if you build up a lot of 'soft' inquiries you can 'bump' hard inquriries away. It happens quicker on TU than on EQ, and it doesn't happen at all on Experian. (They allow ALOT of file space.)

C or Choppage
A possible downfall of trying for bumpage; more likely to happen w/ EQ. If EQ notices that your file is getting close to bumpage, they may clean out your soft inquiries.

Split File
Can happen w/ any of the bureaus but isn't very likely w/ EX. Another problem with space-if your credit file gets too big, your file may split so that some accounts show on one file and the rest in a different one. You won't know which file will be accessed when you apply for credit. Have to work thru the bureaus to get it fixed.

[bkfiler]

Automatic stay. The automatic stay is a feature of bankruptcy law that goes into effect immediately upon filing a bankruptcy petition. It forces creditors to stop all collection actions against the debtor, such as foreclosures, repossessions, garnishments, and evictions, and gives the debtor time to sort things out and come up with a solution to its problems.

Chapter 7. A Chapter 7 bankruptcy, which may be voluntary or involuntary, permits the debtor to liquidate assets in an orderly way. In Chapter 7 (also known as "straight" bankruptcy), a trustee is appointed, who collects all nonexempt assets of the debtor, sells those assets, and distributes the proceeds to creditors. Individuals, partnerships, and corporations may file for Chapter 7 bankruptcy. Businesses usually file under Chapter 7 when they can't be run profitably, there is no chance of reorganizing, and the business wants to distribute its assets to creditors. There is no minimum or maximum debt limitation for Chapter 7, and the debtor need not be insolvent. If the debtor is an individual, he or she may be entitled to a "discharge" of debts. A debtor cannot dismiss a Chapter 7 case.

Chapter 11. A Chapter 11 bankruptcy, which may be voluntary or involuntary, permits the debtor (usually a business) to restructure or reorganize its debt. A trustee is usually not appointed in a Chapter 11 case; the debtor is allowed to continue to manage its business. The debtor develops a "plan" outlining how its debts will be repaid. Usually, the plan does not involve "liquidating" assets; rather, a debtor plans on reorganizing its debts so that it can continue to operate, hopefully on a profitable basis. Individuals, partnerships and corporations may file under Chapter 11. Businesses usually file under Chapter 11 when they are facing a cash flow shortage or temporary downturn in business. Upon confirmation (court and creditor approval of its plan of reorganization), a Chapter 11 debtor receives a discharge of any debt that arose before confirmation. However, confirmation of a plan does not discharge an individual debtor from certain debts that are exceptions to discharge under the Bankruptcy Code. A debtor cannot dismiss a Chapter 11 case.

Chapter 13. A Chapter 13 bankruptcy is used by individuals (including those engaged in business) to restructure or reorganize debt. A debtor "engaged in business" is someone who is self-employed and incurs trade credit in the production of income from that employment. A debtor engaged in business may continue to operate his or her business in a Chapter 13 case. Like a Chapter 11, the debtor proposes a plan that outlines how his or her debts will be repaid. The debtor must devote all of his or her disposable income to payments under the plan for three to five years. To qualify for Chapter 13, a debtor must have regular income; unsecured debts of less than $269,250; and secured debts of less than $807,750. Partnerships and corporations may not file under Chapter 13. A trustee is appointed in all Chapter 13 cases, but the trustee's role is much more limited than in a Chapter 7 case. The small business debtor is allowed to continue his or her business. In Chapter 13 cases, a debtor receives a discharge when the debtor has completed all payments under the plan. Only a debtor may commence a Chapter 13 bankruptcy proceeding. Creditors may not commence an involuntary proceeding under Chapter 13. A debtor may dismiss a Chapter 13 case.

Discharge. Generally, a discharge in bankruptcy means that an individual debtor's obligations are erased or wiped out. When a discharge is granted, it protects the debtor from personal liability on the discharged debt. A discharge is only available to certain debtors and for certain debts, however. For example, debtors that are not individuals cannot receive a discharge in a Chapter 7 bankruptcy. In addition, if a corporate or partnership debtor is liquidating under Chapter 11 and will not continue operating on consummation of a plan, it will not receive a discharge.

A creditor or the trustee may object to a debtor's general discharge if the debtor has committed a fraud on the court, for example if the debtor has been dishonest, uncooperative, or has destroyed or hidden property of the estate. In such cases, the debtor may be denied a discharge altogether. If a debtor is denied a general discharge, the debtor does not receive the benefit of the bankruptcy. The debtor will remain liable for pre-petition debts and all creditors are free to pursue the debtor to recover their claims.

In a Chapter 7 case, certain particular debts are not dischargeable under Section 523 of the Bankruptcy Code. Debts that are not dischargeable include: (1) debts for certain taxes; (2) debts arising from false pretenses, false representation, actual fraud or false financial statements; (3) debts for certain luxury goods and cash advances; (4) debts that a debtor fails to list in the bankruptcy schedules; (5) debts arising from fraud or defalcation, embezzlement or larceny; (6) debts for alimony and child support, and other obligations arising out of a divorce or separation; (7) student loans; (8) restitution orders; and (9) debts arising from willful and malicious injury.

In a Chapter 11 case, the debtor receives a discharge of all debts that arose before confirmation of the plan. If the debtor is an individual, however, the same exceptions to discharge found in Section 523 of the Bankruptcy Code apply.

In a Chapter 13 case, all debts that are provided for in the plan are discharged upon completion of all payments under the plan, with only a few exceptions. The only debts excepted from discharge (not discharged) under Chapter 13 are: (1) debts that were not listed on the debtor's bankruptcy schedules; (2) debts for spousal maintenance, alimony and child support; (3) student loans; (4) criminal fines and restitution; and (5) debts related to driving while intoxicated.

Exemptions. Individual debtors are entitled to keep certain assets free from the claims of creditors, under federal or state exemption laws. Typical exemptions are the homestead exemption (equity in your personal residence); cash value of insurance policies, household goods and furnishings, clothing, wages, and tools used in the debtor's job. The amount of the exemption depends on whether federal or state exemptions are available and/or used.

Fraudulent transfer. In general terms, a fraudulent transfer is a transfer made by a debtor with the intent or effect of reducing the assets available to creditors. Fraudulent transfer law exists both in and outside of bankruptcy. A trustee has the power to avoid transfers of the debtor made with actual intent to hinder, delay, or defraud creditors, and certain transfers for which the debtor did not receive a reasonably equivalent value in exchange for the transfer.

Preference. A preference is a payment received from a debtor by a creditor in the ninety days before the debtor's bankruptcy filing. The trustee can recover such a payment if: (1) the debtor made the payment within ninety days of filing bankruptcy; (2) the payment was made to or for the benefit of a creditor on a pre-existing debt; and (3) the debtor was insolvent when it made the payment. There are various defenses to a preference action by the trustee, including that the payment was made in the ordinary course of the debtor's business.

Relief from the automatic stay. Although the automatic stay prohibits collection of debts by a creditor-including secured creditors-a secured creditor can ask the bankruptcy court for "relief" from the automatic stay. There are three ways a creditor can obtain relief from the automatic stay. First, a creditor is entitled to relief for "cause." Although not defined by the Bankruptcy Code, usually cause means the creditor does not feel that it has adequate protection. Second, if a creditor wants relief from stay related to an act against property, the creditor must show that the debtor does not have equity in the property and that the property is not necessary to an effective reorganization. Third, a creditor is entitled to relief if its claim is secured by "single asset real estate," unless the debtor files a plan that is likely to be confirmed or the debtor makes monthly payments to the creditor equal to interest at current fair market value on the balance of the creditor's interest in the real estate.

Trustee. There are several "types" of bankruptcy trustees. (However, they can all be grouped into one category nonetheless, 'Greedy Bastards') The United States Trustee is responsible for oversight of the bankruptcy process as a whole. The United States Trustee's duties are to maintain and supervise a panel of private trustees (usually, but not always, private attorneys) to serve in Chapter 7 cases, review fee applications filed in Chapter 11 cases, monitor plans and disclosure statements in Chapter 11 cases, monitor activities of creditor's committees, monitor the progress of Chapter 11 cases, and assist the United States Attorney in criminal prosecutions.

The United States Trustee appoints the trustee in a Chapter 7 case from a panel of private trustees. A Chapter 7 trustee is responsible for representing the interests of the debtor's estate and creditors as a whole. In a Chapter 13 case, a "standing" trustee is appointed by the United States Trustee to conduct the duties of the United States Trustee in Chapter 13 cases.

Involuntary bankruptcy. In some cases, creditors may file a petition to commence an involuntary bankruptcy. Creditors may commence a Chapter 7 or a Chapter 11 case if they hold the required amount of debt.

Voluntary bankruptcy. A debtor files a petition to commence a voluntary bankruptcy.

[sunshine08]

Good Job -BKFILER - Your picture doesn't do you justice.

[bkfiler]

HELOC = Home Equity Line Of Credit

[bkfiler]

BAPCPA = Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

[angelique]

so this is where i could find these acronyms! great post!

[bkfiler]

adversary proceeding A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court.

assume An agreement to continue performing duties under a contract or lease.

automatic stay An injunction that automatically stops lawsuits, foreclosure, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

business bankruptcy A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.

bankruptcy A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).

Bankruptcy Code The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law.

bankruptcy estate All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)

bankruptcy mill A business not authorized to practice law that provides bankruptcy counseling and prepares bankruptcy petitions.

bankruptcy petition A formal request for the protection of the federal bankruptcy laws. (There is an official form for bankruptcy petitions.)

bankruptcy trustee A private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases to represent the interests of the bankruptcy estate and the debtor's creditors.

chapter 7 The chapter of the Bankruptcy Code providing for "liquidation," i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.

chapter 7 trustee A person appointed in a chapter 7 case to represent the interests of the bankruptcy estate and the unsecured creditors. (The trustee's responsibilities include reviewing the debtor's petition and schedules, liquidating the property of the estate, and making distributions to creditors. The trustee may also bring actions against creditors or the debtor to recover property of the bankruptcy estate.)

chapter 11 A reorganization bankruptcy, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)

chapter 12 The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," as that term is defined in the Code.

chapter 13 The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)

chapter 13 trustee A person appointed to administer a chapter 13 case. (A chapter 13 trustee's responsibilities are similar to those of a chapter 7 trustee; however, a chapter 13 trustee has the additional responsibilities of overseeing the debtor's plan, receiving payments from debtors, and disbursing plan payments to creditors.)

claim A creditor's assertion of a right to payment from a debtor or the debtor's property.

complaint The first or initiatory document in a lawsuit that notifies the court and the defendant of the grounds claimed by the plaintiff for an award of money or other relief against the defendant.

confirmation Approval of a plan of reorganization by a bankruptcy judge.

consumer bankruptcy A bankruptcy case filed to reduce or eliminate debts that are primarily consumer debts.

consumer debts Debts incurred for personal, as opposed to business, needs.

contingent claim A claim that may be owed by the debtor under certain circumstances, for example, where the debtor is a cosigner on another person's loan and that person fails to pay.

creditor A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor.

debtor A person who has filed a petition for relief under the bankruptcy laws.

defendant An individual (or business) against whom a lawsuit is filed.

discharge A release of a debtor from personal liability for certain dischargeable debts. (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts (defined below) and prevents the creditors owed those debts from taking any action against the debtor or the debtor's property to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.)

dischargeable debt A debt for which the Bankruptcy Code allows the debtor's personal liability to be eliminated.

equity The value of a debtor's interest in property that remains after liens and other creditors' interests are considered. (Example: If a house valued at $60,000 is subject to a $30,000 mortgage, there is $30,000 of equity.)

executory contract or lease Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)

exempt A description of any property that a debtor may prevent creditors from recovering.

exemption Property that the Bankruptcy Code or applicable state law permits a debtor to keep from creditors.

exempt property Property or value in property that a debtor is allowed to retain, free from the claims of creditors who do not have liens.

face sheet filing A bankruptcy case filed either without schedules or with incomplete schedules listing few creditors and debts. (Face sheet filings are often made for the purpose of delaying an eviction or foreclosure.)

family farmer An individual, individual and spouse, corporation, or partnership engaged in a farming operation who meet certain debt limits and other statutory criteria for filing a petition under chapter 12.

fraudulent transfer A transfer of a debtor's property made with intent to defraud or for which the debtor receives less than the transferred property's value.

fresh start The characterization of a debtor's status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.)

insider (of individual debtor) Any relative of the debtor or of a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or corporation of which the debtor is a director, officer, or person in control.

insider (of corporate debtor) A director, officer, or person in control of the debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a relative of a general partner, director, officer, or person in control of the debtor.

joint administration A court-approved mechanism under which two or more cases can be administered together. (Assuming no conflicts of interest, these separate firms or individuals can pool their resources, hire the same professionals, etc.)

joint petition One bankruptcy petition filed by a husband and wife together.

lien A charge upon specific property designed to secure payment of a debt or performance of an obligation.

liquidation A sale of a debtor's property with the proceeds to be used for the benefit of creditors.

liquidated claim A creditor's claim for a fixed amount of money.

motion to lift the automatic stay A request by a creditor to allow the creditor to take an action against a debtor or the debtor's property that would otherwise be prohibited by the automatic stay.

no-asset case A chapter 7 case where there are no assets available to satisfy any portion of the creditors' unsecured claims.

nondischargeable debt A debt that cannot be eliminated in bankruptcy.

objection to discharge A trustee's or creditor's objection to the debtor's being released from personal liability for certain dischargeable debts.

objection to exemptions A trustee's or creditor's objection to a debtor's attempt to claim certain property as exempt, i.e., not liable for any prepetition debt of the debtor.

plan A debtor's detailed description of how the debtor proposes to pay creditors' claims over a fixed period of time.

plaintiff A person or business that files a formal complaint with the court.

postpetition transfer A transfer of a debtor's property made after the commencement of the case.

prebankruptcy planning The arrangement (or rearrangement) of a debtor's property to allow the debtor to take maximum advantage of exemptions. (Prebankruptcy planning typically includes converting nonexempt assets into exempt assets.)

preferential debt payment A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an insider) that gives the creditor more than the creditor would receive in the debtor's chapter 7 case.

priority The Bankruptcy Code's statutory ranking of unsecured claims that determines the order in which unsecured claims will be paid if there is not enough money to pay all unsecured claims in full.

priority claim An unsecured claim that is entitled to be paid ahead of other unsecured claims that are not entitled to priority status. Priority refers to the order in which these unsecured claims are to be paid.

proof of claim A written statement describing the reason a debtor owes a creditor money. (There is an official form for this purpose.)

property of the estate All legal or equitable interests of the debtor in property as of the commencement of the case.

reaffirmation agreement An agreement by a chapter 7 debtor to continue paying a dischargeable debt after the bankruptcy, usually for the purpose of keeping collateral or mortgaged property that would otherwise be subject to repossession.

secured debt Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default.

schedules Lists submitted by the debtor along with the petition (or shortly thereafter) showing the debtor's assets, liabilities, and other financial information. (There are official forms a debtor must use.)

statement of financial affairs A series of questions the debtor must answer in writing concerning sources of income, transfers of property, lawsuits by creditors, etc. (There is an official form a debtor must use.)

statement of intention A declaration made by a chapter 7 debtor concerning plans for dealing with consumer debts that are secured by property of the estate.

substantial abuse The characterization of a bankruptcy case filed by an individual whose debts are primarily consumer debts where the court finds that the granting of relief would be an abuse of chapter 7 because, for example, the debtor can pay its debts.

substantive consolidation Putting the assets and liabilities of two or more related debtors into a single pool to pay creditors. (Courts are reluctant to allow substantive consolidation since the action must not only justify the benefit that one set of creditors receives, but also the harm that other creditors suffer as a result.)

341 meeting A meeting of creditors at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs.

transfer Any mode or means by which a debtor disposes of or parts with his/her property.

typing service A business not authorized to practice law that prepares bankruptcy petitions.

United States trustee An officer of the Justice Department responsible for supervising the administration of bankruptcy cases, estates, and trustees, monitoring plans and disclosure statements, monitoring creditors' committees, monitoring fee applications, and performing other statutory duties.

undersecured claim A debt secured by property that is worth less than the amount of the debt.

unlawful detainer action A lawsuit brought by a landlord against a tenant to evict the tenant from rental property--usually for nonpayment of rent.

unliquidated claim A claim for which a specific value has not been determined.

unscheduled debt A debt that should have been listed by a debtor in the schedules filed with the court but was not. (Depending on the circumstances, an unscheduled debt may or may not be discharged.)

unsecured claim A claim or debt for which a creditor holds no special assurance of payment, such as a mortgage or lien; a debt for which credit was extended based solely upon the creditor's assessment of the debtor's future ability to pay.

voluntary transfer A transfer of a debtor's property with the debtor's consent.

[bkfiler]

Replevin

[bkfiler]

NMI - Net Monthly Income is your current monthly income, less your allowed expenses.

[bkfiler]

CMI - Current Monthly Income has a special meaning in the new bankruptcy law. CMI is defined as the average monthly gross income received during the six full months just prior to your filing bankruptcy. CMI includes gross income from all sources including income of a non-filing spouse, regular gifts or assistance from family members, and gross income from a wholly-owned business. (Business expenses are deducted elsewhere in the means test calculations.) On the other hand, social security income is excluded from the definition of CMI.