Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Bad debt
See debt
Bad-debt loss ratio
the ratio of uncollectible debt to a business's total recr i%~,hi.=
Bad-debt reserve
see reserve
Court for the Relief of Insolvent Debtors
Hist. A court located in London with jurisdiction over bankruptcy matters. ( The Bankruptcy Act of 1861 abolished the Court.
Debt
1. Liability on a claim; a specific sum of money due by agreement or otherwise <the debt amounted to $2,500>. 2. The aggregate of all existing claims against a person, entity, or state <the bank denied the loan application after analyzing the applicant's outstanding debt>. 3. A nonmonetary thing that one person owes another, such as goods or services <her debt was to supply him with 20 international first-class tickets on the airline of his choice>. 4. A common-law writ by which a court adjudicates claims involving fixed sums of money <he brought suit in debt>. - Also termed (in sense 4) writ of debt. "The action of debt lies where a party claims the recovery of a debt; that is, a liquidated or certain sum of money due him. The action is based upon contract, but the contract may be implied, either in fact or in law, as well as express; and it may be either a simple contract or a specialty. The most common instances of its use are for debts: (a) Upon unilateral contracts express or implied in fact. (b) Upon quasi-contractual obligations having the force and effect of simple contracts. (c) Upon bonds and covenants under seal. (d) Upon judgments or obligations of record. (e) Upon obligations imposed by statute." Benjamin J. Shipman, Handbook of Common-Law Pleading § 52, at 132 (Henry Winthrop Ballantine ed., 3d ed. 1923).
Debtor's Act of 1869
An English statute that, among other things, (1) abolished imprisonment for debt except in certain cases, as when a debtor owed a debt to the Crown or a debtor had money but refused to pay a debt, (2) abolished arrest by mesne process, that is, by compelling the defendant to appear and give bail unless it was believed that the defendant would leave the country, (3) made it a misdemeanor to obtain credit under false pretenses or to defraud creditors, and (4) defined how warrants and judgment orders would be executed.
absconding debtor
A debtor who flees from creditors to avoid having to pay a debt. ( Absconding from a debt was formerly considered an act of bankruptcy. See ACT OF BANKRUPTCY.
account debtor
A person obligated on an account, chattel paper, or general intangible. * The UCC exempts from the definition of account debtor a person obligated to pay a negotiable instrument, even if the instrument constitutes chattel paper. UCC § 9-105(1)(a).
action of book debt
See ACCOUNTING (4)
action of book debt.
See ACCOUNTING (4).
active debt
Civil law. A debt due to another person.
ancestral debt
An ancestor's debt that an heir can be compelled to pay.
antecedent debt
1. Contracts. An old debt that may serve as consideration for a new promise if the statute of limitations has run on the old debt. See PREEXISTING-DUTY RULE. 2. Bankruptcy. A debtor's prepetition obligation that existed before a debtor's transfer of an interest in property. ( For a transfer to be preferential, it must be for or on account of an antecedent debt. See PREFERENTIAL TRANSFER.
bad debt
A debt that is uncollectible and that may be deductible for tax purposes.
bad-debt reserve
A reserve to cover losses on uncollectible accounts receivable.
bill of debt.
A debt instrument, such as a bill obligatory or promissory note.
bonded debt
A debt secured by a bond; a business or government debt represented by issued bonds.
certificate of indebtedness
1. DEBENTURE. 2. TREASURY BILL. 3. CERTIFICATE OF DEPOSIT.
community debt
A debt that is chargeable to the community of husband and wife rather than to either individually. See COMMUNITY PROPERTY.
confusion of debts
See MERGER (8 ,.
consumer debt
A debt incurred by someone primarily for a personal, family, or household purpose "What are 'consumer' debts? Section 101(8) defines a consumer debt as follows: 'consumer debt means debt incurred by an individual primarily for a personal, family, or household purpose.' The touchstone is the debtor's use of the money. The nature of the collateral, the business of the creditor and the form of the loan are all irrelevant. A loan of $25,000 from a Credit Union to pay for a child's education is a consumer debt, but the same loan used to finance the opening of an accounting business is not a consumer debt. This is so irrespective of the nature of the collateral put up for the debt." David G. Epstein et al., Bankruptcy § 7-45, at 579 (1993).
contingent debt
A debt that is not presently fixed but that may become fixed in the future with the occurrence of some event.
convertible debt
See DEBT.
debt by simple contract
See simple-contract debt.
debt by special contract
See special-contract debt under DEBT.
debt by specialty contract
See special-contract debt.
debt capital
Funds raised by issuing bonds.
debt consolidation
See DEBT POOLINi
debt financing
The raising of funds by issuing bonds or notes or by borrowing from a financial institution.
debt financing.
See INANCIN
debt instrument
A written promise to repay a debt, such as a promissory note, bill, bond, or commercial paper.
debt limitation
A ceiling placed on borrowing by an individual, business, or government. ( The constitutions of many states prohibit the states from incurring debt in excess of a stated amount. Other state constitutions allow states to incur debt above a stated amount only through a vote of the people. - Also termed limitation on indebtedness. debt of record. See DEBI
debt of record
A debt evidenced by a court record, such as a judgment.
debt pooling
An arrangement by which a person's debts are consolidated and creditors agree to accept lower monthly payments or to take less money. - Also termed debt consolidation; debt adjustment.
debt ratio
A corporation's total long-term and short-term liabilities divided by the firm's total assets. ( A low debt ratio indicates conservative financing and thus usu. an enhanced ability to borrow in the future. - Also termed debt-tototal-assets ratio.
debt retirement
Repayment of debt; RETIREMENT (3).
debt security
A security representing funds borrowed by the corporation from the holder of the debt obligation; esp., a bond, note, or debenture. a Generally, a debt security is any security that is not an equity security. See BOND (3).
debt service
1. The funds needed to meet a long-term debt's annual interest expenses, principal payments, and sinking-fund contributions. 2. Payments due on a debt, including interest and principal.
debt-equity ratio
See DEEQ1 Y RATIO
debt-to-equity ratio
A corporation's long-term debt divided by its owners' equity, calculated to assess its capitalization. - Also termed debtequity ratio; debt-to-net-worth ratio.
debt-to-total-assets ratio
See DEBT RATIO.
debtee. Archaic
See CREDITOR
debtor
1. One who owes an obligation to another, esp. an obligation to pay money. 2. Bankruptcy. A person who files a voluntary petition or against whom an involuntary petition is filed - Also termed bankrupt. 3. Secured transactions. A person who either (1) has a property interest - other than a security interest or other lien - in collateral, even if the person is not an obligor, or (2) is a seller of accounts, chattel paper, payment intangibles, or promissory notes. UCC § 9-102(a)(19). - Abbr. Dr.
debtor rehabilitation
See REHABILITATION (3).
debtor-in-possession
Bankruptcy. A Chapter 11 or 12 debtor that continues to operate its business as a fiduciary to the bankruptcy estate. ( With certain exceptions, the debtor-inpossession has all the rights, powers, and duties of a Chapter 11 trustee. - Abbr. DIP.
dirt-for-debt transfer
A transaction in which a bankrupt debtor satisfies all or part of a secured debt by transferring the collateral to the creditor.
exigible debt
A liquidated and demandable debt; a matured claim.
fiduciary debt
A debt founded on or arising from a fiduciary relationship, rather than from a contractual relationship. fiduciary duty. See DUTY (2).
fixed debt
Generally, a permanent form of debt commonly evidenced by a bond or debenture; long-term debt. - Also termed fixed liability.
floating debt
Short-term debt that is continuously renewed to finance the ongoing operations of a business or government.