Bankruptcy
GeneralA legal process for people who cannot repay their debts. It can eliminate most debts but seriously damages your credit for years and may require you to give up certain assets. It should be a last resort after exploring other options.
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Debt
Money you owe to someone else, whether a bank, credit card company, family member, or other lender. Not all debt is harmful — a mortgage or student loan can build toward something — but high-interest debt like credit cards can trap you.
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Credit score
A number between 300 and 900 that represents how reliably you have handled borrowed money. Lenders, landlords, and some employers check this score. Paying bills on time and keeping balances low are the two biggest factors.
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Default
Failing to repay a debt according to the agreed terms. Defaulting damages your credit score, may trigger collection calls, and can lead to legal action. On-reserve, Section 89 provides some protection against seizure of property.