Also known as: arrears · arrearage · arrearages · overdue · default
Written by attorneys · grounded in primary & secondary sources — see below
A condition in which a party has fallen behind in the payment of a debt or the performance of an obligation. The condition creates an unpaid or overdue amount that may trigger remedies such as acceleration, foreclosure, or damages.
Anita Ali pledged her home to secure a loan from Atlas Ventures. After missing three monthly installments Anita fell into arrear on the debt. Atlas invoked its security interest and initiated foreclosure proceedings to recover the full amount due.
Antonio Alvarado sued Aether Technologies for breach of contract seeking a sum certain. Aether fell into arrear on the debt and failed to file any responsive pleading. The clerk entered default against Aether under the applicable rule.
Alice Atkins leased space from Arcadia Retail. After the landlord failed to deliver possession Alice incurred storage costs she had reasonably foreseen at lease signing. Arcadia fell into arrear on its resulting obligation to compensate Alice for the loss.
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Aaron Adams defaulted on two installments owed to Astra Aerospace under a note secured by real property. The arrear triggered the lender's acceleration clause allowing it to declare the entire debt immediately due. Astra then commenced foreclosure to satisfy the accelerated obligation.
Angela Acosta obtained a default against Ava Adebayo after proper service. The complaint had demanded $50,000 in unpaid rent arrears. The court entered judgment limited to that amount and could not award additional relief beyond the pleaded demand.
Atlas Ventures leased premises to Anita Ali for business use. After the landlord defaulted Ali secured substitute space at higher cost while the default continued. Those additional rental expenses placed the landlord in arrear for the reasonable costs incurred by the tenant.
The landlord may accelerate the obligation, seek possession through eviction, or pursue a deficiency judgment after foreclosure on any security. State law and the lease terms determine whether notice or a cure period is required before acceleration.
No. The judgment must not differ in kind from or exceed in amount what is demanded in the pleadings. The court may grant other relief only in non-default judgments.
A tenant may recover reasonable expenditures made before the default that the landlord could have foreseen, plus additional costs of substituted premises incurred while the default continues. The tenant may also recover lost profits in business leases when proven with reasonable certainty.
…requiring production of an arrested person before a commissioner "without unnecessary delay" and excluding evidence obtained in default of that statutory obligation, were nonetheless responsive to the same considerations of Fifth Amendment policy that unavoidably face us now as to the States. In McNabb , 318 U. S., at…