In Legal Lingo in Bankruptcy, we discussed common terms you may hear in a bankruptcy.
Here is a list of common terms and their meanings in Chapter 13 bankruptcy:
Bankruptcy Plan: The plan is what specifies the length, payment amount, and terms of the Chapter 13 bankruptcy.
Confirmation Hearing: This hearing is where the Court will either confirm or deny your bankruptcy plan. In most cases, you will not have to attend your confirmation hearing.
Modification: You may hear your attorney talk about a modification. This is what we call any changes or amendments to your bankruptcy plan. For instance, if you have to increase or decrease your plan payments, you would do a modification.
Arrears: If you are behind on payments, whether this is your car, house, child support, taxes, or plan.
Cure Order: A cure order is used to catch up your Chapter 13 payments, if you have fallen behind. It is an agreement worked out between you and the Trustee for your case.
Motion to Dismiss: A motion to dismiss, is a motion that asks the Court to dismiss your case. A common reason for a motion to dismiss is failure to make your plan payments.
Motion for Relief: A Motion for Relief is a motion made by a creditor that asks the Court for relief from the bankruptcy automatic stay. If granted, the motion for relief will allow the creditor to take collection efforts. For example, if you are behind on car payments and a motion for relief is granted, the vehicle lender would be allowed to repossess your vehicle.
Surrender: If you want to give secured property back to the creditor voluntarily, you would surrender it.
We can help you understand these commons terms and many more in Chapter 13 bankruptcy. Visit www.kainscott.com to speak with an attorney today. You will be glad you did!
