Incipient Default
Categories: Banking
Your car speeds toward the cliff’s edge, as you tightly hold hands with the person in the passenger seat, ready to fly off into the great beyond. But you haven’t driven off into the canyon yet. Incipient crash.
Money is running out. Your loan payment is due at the end of the month, but you have no prospects of getting enough cash. Incipient default.
The term “incipient default” refers to a situation when a borrower is clearly on their way to defaulting on a loan, but hasn’t entered full default. The state is often defined in a loan agreement. For instance, two months late on payments might define incipient default, while three months late might define actual default.
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Finance, a la shmoop. What is a 1099? Well it's a tax form for the rest of us the
non fully employed, the non recipients of crappy health care and benefit plans, the [Man looks shocked at his medical bill]
non recipients of fancy corporate business cards those of us who choose to [Business card for Brett Corporate]
go it on our own as consultants, contractors, day laborers and
independents who self employ under the yoke of many masters trying to make our [A contractors diary]
own little way in the world, yeah. Corporations who hire contractors in
whatever form, must deliver to those contractors a form 1099 which outlines [Corporation giving out 1099s to contractors]
and stipulates the details of the job performed for the contractee. That 1099
is a direct conduit to the IRS holding out their arm to shake your hand and [The form 1099s are sent to the IRS]
then turning it 90 degrees to the right. [IRS's hand out expecting something]