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An individual, organization, or other entity that lends money or extends credit, and has the legal right to collect the debt.

Debt that does not have collateral attached, posing a higher risk for the creditor as the repayment is based only on the debtor's creditworthiness.

A financial restructuring technique where a debt holder agrees to cancel some or all of the debt in exchange for equity in the debtor’s business.

A legal principle that determines the order in which certain types of debts are to be paid out in the case of insolvency, with some debts having preference over others.

The original amount of a debt or investment on which interest is calculated.

A temporary prohibition of an activity or a legal authorization to delay payment of debts or to suspend some other legal obligation.

A provision in bankruptcy law that immediately stops most collection actions against the debtor or the debtor's property as soon as a bankruptcy petition is filed.

The right of a debtor to redeem their mortgaged property upon payment of their debts, usually prior to any foreclosure sale.

An agreement between a debtor and creditors where the debtor repays an agreed upon amount of the debt over time, often to avoid bankruptcy.

The process by which a creditor takes actions to enforce payment of a debt by a debtor, including legal proceedings.

A financial state in which an individual or entity cannot meet their debts as they come due, and the value of their assets is less than the amount of liabilities.

A legal commitment made by an individual to repay the debts of a company or another person if they default, exposing personal assets to risk.

A debt that is backed by collateral, giving the creditor a security interest in an asset which can be repossessed if the debtor defaults.

A formal demand for debt repayment issued by a creditor, under statutory law, that if not complied with within a given time frame can be a basis for initiating insolvency proceedings against the debtor.

A document filed by a creditor in a bankruptcy case that asserts the amount owed by the debtor and the basis for that claim.

A legal process through which individuals or entities who cannot repay debts to creditors may seek relief from some or all of their debts.

An individual or entity that owes money to a creditor as a result of borrowing funds or obtaining goods or services on credit.

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to measure financial health.

A form of fraud where belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

A legal test used to determine whether a company can pay its debts as they fall due and whether its assets exceed its liabilities.

A process in insolvency proceedings where the debtor's business operations are rearranged in order to allow the continuation of the business and repayment of debts over time.

The release of a debtor from the obligation to repay their debts, usually after the completion of the bankruptcy process.

A licensed professional who specializes in taking charge of insolvent estates, both corporate and personal, and supervises the process of winding up affairs, including liquidation and reorganization.

A term in a loan or bond agreement that requires the borrower to meet certain financial conditions, often to maintain certain financial ratios.

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

The process of winding up an insolvent company's affairs by selling off its assets in order to pay as much debt as possible.

An assessment of the creditworthiness of a borrower, predicting their ability to repay a loan and an estimate of the probability of the borrower defaulting.

A chapter of the U.S. Bankruptcy Code that allows reorganization under the bankruptcy laws of the United States, typically involving a corporation or partnership.

A payment or transfer of assets to a creditor made shortly before a debtor declares bankruptcy which the bankruptcy court may deem unfair and reverse.