Delinquency
Failure to make payments when payments are due. For most mortgages, payments are due on the first day of the
month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late
and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to
one or more of the credit bureaus.
Denial of Discharge
Penalty for debtor misconduct with respect to the bankruptcy case or creditors as a whole. The grounds on which
the debtor's discharge may be denied are found in 11 U.S.C. 727. When the debtor's discharge is denied, the debts
that could have been discharged in that case cannot be discharged in any subsequent bankruptcy. The
administration of the case, the liquidation of assets and the recovery of avoidable transfers, continues for the
benefit of creditors.
Dischargable
Debts that can be eliminated in bankruptcy. Certain debts are not dischargeable; that it, they may not be discharged
through bankruptcy or may only be discharged through Chapter 13. Family support and criminal restitution are
examples of debts which cannot be discharged. Debts incurred by fraud can only be discharged in Chapter 13
bankruptcy.
Discharge
The legal term for the order eliminating a debt through a bankruptcy case. When a debt is discharged, it is no
longer legally enforceable against the debtor, though any lien that secures the debt may survive the bankruptcy
case.
Equity
A homeowner's financial interest in a property. Equity is the difference between the value of the property and the
amount still owed on its mortgage and other liens.