Word: Consumer debts
Definition:
Debts incurred for personal, rather than business, needs.
Sample Sentence:
The court found that the majority of the debtor’s liabilities were consumer debts.
Why It Matters:
Classifying debts as consumer or business can affect bankruptcy eligibility and proceedings.
Quick Tip:
Credit card bills and car loans are common examples of consumer debt.
Source: https://www.uscourts.gov/glossary
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