If you’re navigating the process of filing for bankruptcy it is likely that you are facing a plethora of terms that could make the process more difficult. Understanding the various terms in the process of bankruptcy can help you during bankruptcy proceedings. Here are some of the top terms you should know!

Dismissal

This is when you filed for bankruptcy but you did not receive any type of discharge of your debt. Dismissals can occur due to a number of reasons including fraud or a failure to complete the proper paperwork.

Secured Debt

These are debts that have a collateral associated with them such as a home or car. A creditor does have the right to repossess collateral property in order to pay off debts.

Unsecured Debt

These are debts that cannot be used as a collateral such as your medical bills, utility bills and credit card bills.

Chapter 13

This is the type of bankruptcy that lasts between 3 to 5 years and is often considered a reorganization bankruptcy. This will allow the debtor to keep their assets but it involves the process of a repayment plan in order to pay for the debts or a portion of the debts over a period of time.

Chapter 7

This type of bankruptcy is much shorter than a Chapter 13 bankruptcy and it allows you to completely eliminate many of your debts. Many of the assets you own will be liquidated to pay off your creditors.

Automatic stay

This is an order placed in a bankruptcy court that will make sure that creditors will not be able to contact you throughout the process of your debt collection. Once an automatic stays put into place, your creditors will not be able to contact you until the bankruptcy is completed.

Trustee

This is an official that is appointed by the court to handle the process of your bankruptcy case. They will be responsible for handling the investigation and making a decision regarding creditor payments, the distribution of assets and the monitoring of your repayment solution.

If you need extra assistance be sure to contact us today. We are skilled bankruptcy attorney’s capable of helping you through the process of filing.

This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee! Trey is one of the founding partners of https://brunerwright.com/, which specializes in areas related to bankruptcy law, estate planning, and business litigation.

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