Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

DEBT FACTORING

Selling invoices to a third party. They must process the invoices and get loans based on payments of the invoices.

DEBT FORGIVENESS

To write off more than one loan to a troubled firm. It helps in restructuring debt so that the remaining balance can be paid.

DEBT RELIEF

Changing a countries foreign liabilities when almost none of its revenue is left for basic needs.

DEBT RESTRUCTURING

An agreement between creditors and the firms to reorganize liabilities to make it more feasible. It is done to avoid foreclosure or liquidations. It can involve forgiveness, rescheduling, and conversion into equity.

DEBT RESTRUCTURING FRAUD

When a company files for bankruptcy hiding its assets. The debt is reduced assuming that they have less to pay than they really do.

DEBT SECURITY

A debt instrument that is issued with a repayment promise on a date at a specific interest rate.

DEBT/ASSET RATIO

The percent of assets that are financed by debt. It is highly leveraged if the ratio is high.

DEBT-EQUITY RATIO

The leverage a firm has for repaying debts. It shows capital from trade creditors and lenders. AKA leverage ratio and gearing ratio.

DEBT-EQUITY SWAP

When a firm trades common stock thats new for bonds they already issued. Refer to debt for export swap.

DEBTOR-IN-POSSESSION (DIP) FINANCING

Funding arranged for a company in BANKRUPTCY that is filing a REORGANIZATION plan; the bank group providing DIP financing generally assumes some level of control and/or COLLATERAL in order to protect its

DEBUGGING

1.fixing the problems in a software when it crashes, acts strangely, or is hacked. Refer to bug. 2. fixing existing errors or potential errors in a system to make is good for

DECEASED ACCOUNT

When a bank account is owned by a now dead person. It is frozen while it awaits for instructions from the executor. Issues about heirs and creditors are considered at this time.

DECENTRALIZATION

Transfering the power and responsibility to get better results. Delegation about authority in the organization and its small departments is done at this time.

DECERTIFICATION

When employees disassociate from a union or when a firm denies a union’s recognition to represent the employees.

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.