Delinquency versus Default

In the financial world, there are various terms used that the average person may not know the definition of, or that they may be entirely unaware of. Frequently used terms that can be used in different ways are “delinquent” and “default.” Understanding these terms will help you discern your financial situation and any ensuing problems.

If you are struggling to keep up with your debts, or if you are facing an inability to pay off interest rates and loans, bankruptcy may be your best legal option. To learn about the benefits of bankruptcy, contact an experienced New Orleans bankruptcy attorney from the law office of Kervin & Young, LLC today. Call us at 504-599-5906 to schedule a free initial consultation.

Understanding the Terminology

When a person is unable to meet their contractual obligations, such as a loan payment, he or she may be classified as “delinquent.” This term implies a sense of carelessness or recklessness. One may only be considered delinquent for a certain amount of time (determined by the lender). If the borrower fails to correct their error, they will be considered defaulted.

Default gives the lender, or the holder of a mortgage bond, rights and recourse under the mortgage indenture to institute foreclosure proceedings or to accelerate the maturity date.

Contact Us

If you are currently delinquent or in danger of defaulting on your loans or mortgages, you should speak with a New Orleans debt negotiation lawyers of Kervin & Young, LLC today. Call 504-599-5906 to discuss your case with a professional.