BANKRUPTCY GLOSSARY: COMMON BANKRUPTCY TERMS DEFINED (PT. 1)
Are you thinking about filing for bankruptcy to get out from under significant debt? If so – and if you’ve never filed for bankruptcy before, you’re going to probably run across or hear some common bankruptcy terms that you may not be familiar with. Understanding these terms, however, can be important to know what to expect from the process and possibly even to assuage your concerns about moving forward.
In this three-part blog series, we will present a bankruptcy glossary that clearly and simply defines some of the most important bankruptcy terms to know. If, instead, you are ready to receive professional advice pertaining to you and your financial situation, don’t hesitate to contact the experienced Denver metro area bankruptcy attorneys at Garcia & Gonzales, P.C. We are committed to helping you figure out and pursue your best debt relief options.
OUR BANKRUPTCY GLOSSARY: CLEARLY DEFINED BANKRUPTCY TERMS
Automatic stay – A court order that is handed down as soon as someone files for bankruptcy. This order effectively stops all creditor communications and actions against a debtor. In particular, when the automatic stay takes effect, creditors can no longer pursue action to sue a debtor, repossess his assets, foreclose on his home, and/or garnish his wages.
Bankruptcy estate – The entirety of a person’s assets and equitable interests at the time (s)he files for bankruptcy. While a bankruptcy estate will include all of the property someone owns individually, it also generally includes jointly owned property.
Bankruptcy petition – The official document that is filed by a debtor with the court to initiate a bankruptcy case. While debtors themselves can file bankruptcy petitions for themselves, their creditors may also file these petitions on a debtor’s behalf (in involuntary bankruptcy).
Bankruptcy trustee – The court-appointed administrator who oversees an individual’s bankruptcy case.
Chapter 7 – Also known as liquidation bankruptcy. This type of bankruptcy can discharge various unsecured debt as long as people qualify for it by passing the means test.
Chapter 13 – Another bankruptcy option for people who don’t qualify for Chapter 7 bankruptcy. With this type of bankruptcy, debtors have to develop 3- to 5-year repayment plans, detailing how they will repay their various creditors.
To get some more straightforward definitions of commonly used bankruptcy terms, be sure to check out the second and third parts of this bankruptcy glossary.
DENVER METRO AREA BANKRUPTCY ATTORNEYS AT GARCIA & GONZALES, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy attorneys at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers, and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills, and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt-relief options, as well as how we can help you, contact us today by calling or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.