KEy Debt Recovery Glossary

At Key Debt Recovery, we believe in making the debt collection process clear and transparent. This glossary explains some of the most common terms in the industry so that businesses and individuals can better understand how debt recovery works and what to expect.

Accounts Receivable (AR)

The money owed to a business by its customers for goods or services already delivered but not yet paid for.

Charge-Off

A debt that a creditor writes off as unlikely to be collected, often sold to a collection agency for recovery.

 

Collections

The process of pursuing payment of overdue debts owed by individuals or businesses.

 

Consumer Debt

Personal debts owed by individuals, such as credit card balances, medical bills, or personal loans.

 

Commercial Debt

Debts owed by one business to another, often for unpaid invoices or services.

 

Creditor

The individual or business to whom money is owed.

 

Debtor

The individual or business that owes money to a creditor.

 

Delinquent Account

An account that has not been paid by the due date and is past due.

 

Fair Debt Collection Practices Act (FDCPA)

A U.S. federal law that governs how debt collectors may conduct business and protects consumers from abusive practices.

 

Garnishment

A legal process that allows a creditor to collect money directly from a debtor’s wages or bank account to satisfy a judgment.

 

Judgment

A court decision that legally confirms a debtor owes money to a creditor.

 

Judgment Debt Collection

The process of enforcing a court judgment to recover money owed, often through liens, garnishments, or asset seizure.

 

Medical Debt Collection

Specialized recovery efforts for unpaid medical bills, while adhering to healthcare compliance requirements.

 

Repossession

Taking back property (such as a vehicle) when a debtor defaults on a loan agreement.

 

Skip Tracing

The process of locating a debtor who has moved or is otherwise difficult to find.

 

Third-Party Collection Agency

An independent agency, like Key Debt Recovery, that collects overdue debts on behalf of creditors.

 

Unsecured Debt

Debt that is not backed by collateral, such as credit card debt or personal loans.

 

Writ of Execution

A court order that allows law enforcement to seize a debtor’s assets to satisfy a judgment.

We hope this glossary has been helpful in clarifying key debt collection terms. If you have any questions or would like to learn more about how Key Debt Recovery can assist you, please don’t hesitate to reach out to us.