Debt Consolidation - Loans
& Credit Card Bill - Debt Consolidation
Consumer Bankruptcy
- Chapter 7 & 13
Bankruptcy
is not the end all solution it's portrayed to
be. Click Here for
a better alternative and receive a free quote in 24-48
hours.
Glossary of Bankruptcy Terms
Being bankrupt or declaring bankruptcy is a legal term for when someone is unable to pay the debts they owe to their creditors. It is a state of financial affairs that usually becomes official when the debtor declares himself unable to make good on his monetary commitments. Another form of bankruptcy is when a creditor or whoever is owed the sum of money files a petition against the person or business that is in debt to them. This term is referred to as involuntary bankruptcy. Officially, declaring bankruptcy has a two-fold purpose: to be able to repay creditors the money that is owed to them and to also help in giving the debtor an opportunity to start over with a clean slate, financially. The two most common forms of accomplishing these two purposes are reorganization bankruptcy and liquidation bankruptcy. In a reorganization process, the debtor is given the opportunity to “reorganize” their debts and the assets available to them while continuing to regular living and working. On the other hand, a liquidation bankruptcy is a more thorough cleansing of all assets being sold to help restore a portion of the money owed to creditors.
Listed below is a partial glossary of some of the more common bankruptcy terms to help those considering this process to understand this course of action more clearly.
Bankruptcy- A legal process that aids in dealing with debt issues of both single individuals and businesses. These are primarily files under one of the chapters of title 11 of the United States Code.
Automatic Stay- An injunction that immediately halts all lawsuits, foreclosures, garnishments and other collection activity against the debtor when a petition of bankruptcy is filed.
Bankruptcy Estate- All legal interests of the debtor in property at the time of bankruptcy filing.
Chapter 7- The chapter of the Bankruptcy Code providing for “liquidation or rather the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors
Chapter 11- A reorganization bankruptcy, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)
Chapter 12- The chapter of the Bankruptcy Code providing for adjustment of debts of a “family farmer,” as that term is defined in the Bankruptcy Code.
Chapter 13- The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
Disclosure statement- A written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide “adequate information” to creditors to enable them to evaluate the chapter 11 plan of reorganization
341 Meeting- A meeting of creditors at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs.
No-Asset Case- A chapter 7 case where there are no assets available to satisfy any portion of the creditors’ unsecured claims.
Secured Debt- Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default.
Free
Consultation
Please fill out our simplified online
form
[ Debt
Consolidation Home
| How
We Help | Qualifications
| Testimonials
]
[ FAQ
| Free Quote
| Tips | Reach
Us | Debt Map | Findus
]
Allied Debt Consolidation
3275 W Hillsboro Blvd -
Deerfield Beach, Fl 33442
All rights reserved. 1998 to present.
Not available in all areas.
Debt Consolidation - Loans & Credit Card Bill - Debt Consolidation
bankrupty
|