Common Bankruptcy Terms

Macon Georgia Bankruptcy Lawyer | Bankruptcy Attorney Macon GA

Bankruptcy law is quite complicated and the process very complex. The legal terms used in the course of the bankruptcy process would seem like Latin and Greek to most commoners. A little bit of enlightenment is very necessary so that the person approaching bankruptcy attorney is aware of what is being talked and there by be able to make an informed decision.

• Debtor – Person who owes money to creditors. Mostly bankruptcy is filed by debtor for discharge of his debts.
• Secured Debt – Debt which has been taken against collateral and hence failure to make payments can result in loss of collateral. Thus if you default in your mortgage payments, you can lose your home through repossession or foreclosure.
• Unsecured Debt – Debt which is taken without any collateral. Like your credit card debt. The only outcome of defaulting on your credit card payments is harassment by creditors or a judgment against you.
• Asset – Your possession which has resale value. These can include you cars, home, computer, yacht, stocks, bank accounts, bonds etc.
• Discharge – Your debts are repaid through money recovered by selling your assets. This is discharge of your debts under bankruptcy.
• Exemption – Bankruptcy Court allows debtor to protect some of his assets from being discharged. The list of exempted property is decided by the state and often includes car, primary residence, clothes, medicine refills, personal care items etc. exempted property is debtors to retain and no one can try to possess it.
• Automatic Stay – As soon as bankruptcy is filed, creditor activity like collection of debts have to be completely stopped. This is automatic stay and is the protection provided under Bankruptcy Law to debtor.
• Relief from Stay – This is the counter ruling over automatic stay and is requested by creditor for lifting of the automatic stay. The debtor receives information of relief of stay extended to creditor and with help from bankruptcy attorney can think of preparing a Motion for removing this.
• Reaffirmation Agreement – If debtor decides to pay a creditor outside the bankruptcy you need to file a reaffirmation agreement informing the court of the same.
• Trustee – A trustee is a person appointed by the Bankruptcy Court. He is responsible for overseeing the entire process of bankruptcy and ensuring discharge of debts or adherence to repayment plans.  
• Conversion – It often happens that you decide to file under one chapter but later on file under another chapter. This is conversion.
• Dismissal – If debtor does not comply with rules of Bankruptcy law, his case can be dismissed. This can occur even under circumstances where accurate information is not provided before the court.
• Discharge – When all debts of debtor is repaid through chapter 13 bankruptcy or when chapter 7 bankruptcy proceedings are completed debtor’s debts are discharged.

Call a skilled Macon bankruptcy lawyer if you are considering bankruptcy.