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Simple English definitions for legal terms
legal debt
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A quick definition of legal debt:
Legal debt refers to a specific amount of money that someone owes to another person or entity. It can also refer to all the money that someone owes in total. Debt can be for goods or services, and it can be based on a contract or implied agreement. If someone owes a legal debt, they can be taken to court to pay it. There are different types of debt, such as secured debt (backed by collateral) and unsecured debt (not backed by collateral).A more thorough explanation:
Legal debt refers to a specific sum of money that is owed by agreement or otherwise. It can also refer to the aggregate of all existing claims against a person, entity, or state. Legal debt can be a monetary or non-monetary obligation that one person owes another, such as goods or services.
Examples of legal debt include:
- A loan that needs to be repaid with interest
- An unpaid bill for goods or services received
- An obligation to provide a certain amount of goods or services to another party
- A court-ordered judgment against a person or entity
These examples illustrate legal debt because they all involve a specific obligation to pay or provide something to another party. Legal debt can be enforced through legal action, such as a lawsuit or court-ordered garnishment of wages or assets.