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Simple English definitions for legal terms
arrearages
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A quick definition of arrearages:
Arrearages: When someone owes money or payments that they should have made earlier, it is called arrearages. This can happen when people don't pay their bills on time or forget to pay them altogether. It can also happen when someone owes money for child support or alimony. Arrearages can cause problems for people and businesses because they may have to pay more money or be restricted from doing certain things until they pay what they owe.
A more thorough explanation:
Definition: Arrearages refers to being behind on payments or owing a debt. It can refer to payments that are overdue or a person or business that is behind on paying bills, debts, or other obligations.
For example, if someone is supposed to pay their rent on the first of the month but doesn't pay until the fifth, they are in arrears. Similarly, if a business owes money to a supplier but hasn't paid in a while, they are also in arrears.
Arrearages can also refer to situations where someone is behind on paying child support or alimony. In this case, the person is said to be paying in arrears.
Another example of arrearages is with preferred stocks. If a business is in arrears, they must pay back the owed debt before paying other shareholders.
Arrearages can cause problems for individuals and businesses, such as bankruptcy or restrictions on making certain transactions or entering into new debt.