Understanding Common Bankruptcy Terms

Understanding Common Bankruptcy Terms

You may be faced with a lot of bankruptcy terms when you file for bankruptcy. Understanding bankruptcy terms can be helpful during bankruptcy proceedings. These are the most important terms to know.

Dismissal

If you file for bankruptcy but do not receive any discharge of your debts, this is the time. There are many reasons why you might be disqualified, including fraud and failure to file the correct paperwork.

Secured Debt

These are debts with collateral such as a house or car. To pay debts, a creditor can take over the collateral property.

Unsecured Debt

These debts cannot be used to secure collateral, such as medical bills, utility bills, and credit card bills.

Chapter 13

 It is also known as a reorganization bankruptcy.  None of the assets that you have on hand will be sold when you file. With a chapter 13 bankruptcy, you agree that you will be completing a court-approved repayment plan for your debts. Depending on your overall income, the repayment period for your bankruptcy will take 3 to 5 years. Throughout the repayment plan, you’ll be catching up on back payments for all of your secured assets including your home, car, and more. 

Chapter 7

This bankruptcy allows you to eliminate most of your debts. It is shorter than Chapter 13. To pay your creditors, many of your assets will be sold. Under Chapter 7 bankruptcy, most of your property will be sold in order to pay off your debts. Some of your personal property will remain exempt, but there are certain limits on the value of exemptions that are possible. There are state and federal exemption rules that govern what will be available for your exemption level. A married couple that files for bankruptcy together can usually double the value of their exemptions. Exemptions on a homestead are available up to $23,000 on a motor vehicle up to $3775, personal property up to $12,625, and retirement accounts up to $1.28 million.

Automated Stay

This is an order that is placed in bankruptcy court. It will prevent creditors from contacting you during the collection of your debt. After an automatic stay is in place, creditors cannot contact you until the bankruptcy process is complete.

Trustee

This official is appointed by the court to manage your bankruptcy case. This person will handle the investigation, make a decision about creditor payments, distribute assets, and monitor your repayment plan.

We have a team of skilled bankruptcy Lawyers who can help you with the filing process and clear up any questions about bankruptcy terms.

Contact Our Office

Bruner Wright is the best bankruptcy attorney in Southern Georgia. Our team has more than 30 years of experience in helping people file chapter 7 bankruptcy, chapter 11 bankruptcy, chapter 12 bankruptcy, and chapter 13 bankruptcy. Our team has built a very successful practice helping people properly discharge their debts. We provide a personal service that is thorough and detailed in every aspect of our industry. We strive to be responsive to our clients’ needs. 

contact us today to schedule a consultation and find out if Bankruptcy is the right option. One of our attorneys will review your case and help you make the right decision. Our focus is on consumer bankruptcy. We want to help you get financial stability.