You may be wondering, “Who files a joint petition?,” “What does discharge mean?” or even “What is bankruptcy?” The Callahan Law Firm is here to familiarize you with some of the most common terms when it comes to bankruptcy.
An injunction that stops any further proceedings and collection activities against a debtor once a bankruptcy petition is filed.
The legal process for which an individual debt is handled.
All legal equity of the debtor at the time of the bankruptcy filing.
A formal request to the court for protection under the federal bankruptcy laws.
An individual appointed by the court to represent the interests of the bankruptcy estate and the debtor’s creditors.
A claim where the debtor is a cosigner on another person’s loan and the person fails to pay.
An individual or entity to which the debtor owes money.
An individual that has filed a petition under the bankruptcy laws.
The debtor is released from any liability from debt, and prevents creditors from taking any action against the debtor to collect the debt. This discharge prohibits the creditor from any contact with the debtor.
Value of a debtor’s interest in property that remains after a creditor’s interests are considered.
Property that a debtor is allowed to retain, restricted from claims of creditors.
A bankruptcy petition filed by a husband and wife.
A charge on a specific property designed to secure payment on an obligation.
Sale of a debtor’s property which is then used to pay off creditors.
A debt that cannot be eliminated by bankruptcy, such as a student loan.
List where debtor accounts for all assets, liabilities and other financial information. This official form must be submitted with the bankruptcy petition, or soon after.
An individual or entity holding a claim against a debtor that is secured by a lien on property.
Debt such as a mortgage, or other similar liens.
Statement of Financial Affairs
Another form or document that must be filed by the debtor, this form includes questions that must be answered covering topics such as sources of income, transfers of property, and lawsuits by creditors.
Statement of Intention
A declaration made by a chapter 7 debtor of plans on how to deal with his/her consumer debt.
A debt that is secured by property that is worth less than the amount of the debt.
A claim with an undetermined value.
A debt that has been left out of the debt schedules filed with the courts.
A claim where the creditor has no hold or liens against the debtor.