Previously, I wrote about different individuals you’ll come across in your bankruptcy. Here, I want to discuss and provide common terms you’ll come across as well.
Petition – The document filed with the bankruptcy court seeking relief under chapter 7 or chapter 13 bankruptcy.
Schedules – Documents filed with the petition and where you disclose all your assets, creditors, income, expenses and other financial information.
Bankruptcy Court – The Federal venue where a majority of matters related to your bankruptcy will occur.
341 Meeting or First Meeting of Creditors – A mandatory meeting you have to attend. Here, your trustee will verify information you put in your petition and schedules. Creditors have a right to attend the meeting and ask you questions as well.
Credit Counseling and Debtor Education Courses – Mandated courses you have to take – one before filing and another after filing. The first course covers alternatives to bankruptcy and the other course focuses on managing your finances.
Discharge – The bankruptcy court’s recognition that your liability to your debts have ended.
Bankruptcy Estate – All property belonging to you when you file bankruptcy.
Exemptions – Property you own, but not a part of the Bankruptcy Estate.
Means Test – A determination whether you may file a chapter 7 bankruptcy. It is based your income and family size. If it appears you’ve made too much money or have significant disposable income, then there’s a presumption that you shouldn’t file a chapter 7.
Automatic Stay – The postponement of actions, including debt collection, garnishment, foreclosures, against you once you file for bankruptcy and normally lasts the duration of the bankruptcy.
Adversary Proceeding – A lawsuit within your bankruptcy.
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There are other terms that you’ll come across in a bankruptcy so if you’re thinking of filing, and ready to get your life back, reach out to Minnesota’s nicest bankruptcy law firm by going to www.lifebacklaw.com. You won’t regret it!
