Confused about Bankruptcy data? Read BEBdata glossary of terms below for more information.

Adjustment – Percentage of the debt that is to be repaid to the credit grantors in a Chapter 13 bankruptcy

Beacon – The name of a credit score through Equifax.

Balloon Payments – A loan with a balloon payment requires that a single, lump-sum payment be made at the end of the loan.

Chapter 7 Bankruptcy – Chapter of the Bankruptcy Code that provides for court administered liquidation of the assets of a financially troubled individual or business.

Chapter 11 Bankruptcy – Chapter of the Bankruptcy Code that is usually used for the reorganization of a financially troubled business. Used as an alternative to liquidation under Chapter 7. The U.S. Supreme Court has held that an individual may also use Chapter 11.

Chapter 12 Bankruptcy – Chapter of the Bankruptcy Code adopted to address the financial crisis of the nation’s farming community. Cases under this chapter are administered like Chapter 11 cases, but with special protections to meet the special conditions of family farm operations.

Chapter 13 Bankruptcy – Chapter of the Bankruptcy Code in which debtors repay debts according to a plan accepted by the debtor, the creditors and the court. Plan payments usually come from the debtor’s future income and are paid to creditors through the court system and the bankruptcy trustee.

Charge-Off – Action of transferring accounts deemed uncollectible to a category such as bad debt or loss. Collectors will usually continue to solicit payments, but the accounts are no longer considered part of a company’s receivable or profit picture.

Credit Report – Confidential report on a consumer’s payment habits as reported by their creditors to a consumer credit reporting agency. The agency provides the information to credit grantors who have a permissible purpose under the law to review the report.

Credit Scoring – Tool used by credit grantors to provide an objective means of determining risks in granting credit. Credit scoring increases efficiency and timely response in the credit granting process. Credit scoring criteria is set by the credit grantor.

Discharge – Granted by the court to release a debtor from most of his debts that were included in a bankruptcy. Any debts not included in the bankruptcy – alimony, child support, liability for willful and malicious conduct and certain student loans – cannot be discharged

Dismissed – When a consumer files a bankruptcy, the judge may decide to not allow the consumer to continue with the bankruptcy. If the judge rules against the petition, the bankruptcy is known as dismissed.

End User – The business that receives the report for decision making purposes that meet the permissible purpose requirements of the FCRA.

Equal Credit Opportunity ACT (ECOA) – Federal law, which prohibits creditors from discriminating against credit applicants on the basis of sex, marital status, race color, religion, age, and/or receipt of public assistance.

Equifax – One of the three national credit reporting agencies, headquartered in Atlanta, GA. The other two are Experian and TransUnion.

Experian – One of the three national credit reporting agencies, with U.S. headquarters in Costa Mesa, CA. The other two are Equifax and TransUnion.

Fair Credit and Charge Card Disclosure Act – Amendments to the Truth In Lending Act that require the disclosure of the costs involved in credit card plans that are offered by mail, telephone or applications distributed to the general public.

Fair Credit Billing Act – Federal legislation that provides a specific error resolution procedure to protect credit card customers from making payments on inaccurate billings.

Fair Credit Reporting Act (FCRA) – Federal legislation governing the actions of credit reporting agencies.

FICO – The name of a credit score through Experian

Finance Charge – Amount of interest. Finance charges are usually included in the monthly payment total.

Fixed Rate – An annual percentage rate that does not change.

High balance – The highest amount that you have owed on an account to date.

Installment Credit – Credit accounts in which the debt is divided into amounts to be paid successively at specified intervals.

Involuntary Bankruptcy – A petition filed by certain credit grantors to have a debtor judged bankrupt. If the bankruptcy is granted, it is known as an involuntary bankruptcy.

(MES) Median Equivalency Score – This score represents the median of Experian’s National Equivalency Score for each zip+4 and Zip area. This was developed by Experian Information Services.

National Prosperity Score – this score provides risk-adjusted wealth rankings with respect to households across the nation.

Opt Out – The ability of the consumer to notify credit reporting agencies, direct marketers and list compilers to remove their name from all future lists. Consumers may opt out of prescreened credit and insurance offer lists by calling 1 888 5OPTOUT (1 888 567 8688).

Petition – If a consumer files a bankruptcy, but a judge has not yet ruled that it can proceed, it is known as bankruptcy petitioned.

Released – This means that a lien has been satisfied in full.

Repossession – A creditor’s taking possession of property pledged as collateral on a loan contract on which a borrower has fallen significantly behind in payments.

Revolving Account – Credit automatically available up to a predetermined maximum limit so long as customer makes regular payments.

Satisfied – If the consumer has paid all of the money the court says he owes, the public record item is satisfied.

Secured Credit – Loan for which some form of acceptable collateral, such as a house or automobile has been pledged.

Sub-Prime Consumers – Consumers who are considered, to variable degrees, at risk to lend to.

Tradeline – Entry by a credit grantor to a consumer’s credit history maintained by a credit reporting agency. A tradeline describes the consumer’s account status and activity. Tradeline information includes names of companies where the applicant has accounts, dates accounts were opened, credit limits, types of accounts, balances owed and payment histories.

TransUnion – One of the three national credit reporting agencies. The other two are Experian and Equifax.

Type – This refers to the type of credit agreement made with a creditor; for example, a revolving account or installment loan.

Unsecured Credit – Credit for which no collateral has been pledged. Loans made under this arrangement are sometimes called signature loans; in other words, a loan is granted based only on the customer’s words, through signing an agreement that the loan amount will be paid.

Vacated – Indicates a judgment that was rendered void or set aside.

Variable Rate – An annual percentage rate that may change over time as the prime lending rate varies or according to your contract with the lender.

Voluntary Bankruptcy – If a consumer files the bankruptcy on his own, it is known as voluntary bankruptcy.