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Common Terms and Phrases in Bankruptcy in Minneapolis, Minnesota

Written by Amanda Scharber | February 26, 2024 at 1:30 PM

When you first speak to an attorney about filing bankruptcy and throughout your case, you may hear certain terms or phrases used frequently. This blog will explore some of the more common words and what they mean. 

341 Hearing/Meeting of Creditors: This is the only hearing most Chapter 7 or Chapter 13 debtors will attend. It is called a meeting of creditors, as creditors can attend to ask questions about income, debts, expenses, or assets. Most creditors do not attend. It lasts typically between 5-10 minutes and will be held by Zoom or phone call. It is roughly 30 days after filing and is conducted by the trustee in your case. The trustee goes through verification questions regarding your filing. Although you have to answer the trustee’s questions (and creditors if they attend), you are represented during this hearing.

Confirmation Hearing: A confirmation hearing comes into play in a chapter 13 case, but not chapter 7. The confirmation hearing is where the Judge confirms in a court order your plan. Typically, most clients will not attend this hearing. 

Discharge: The discharge is the result of a bankruptcy. The discharge is the court order saying you do not have personal liability on your dischargeable debts anymore. 

Secured, Unsecured and Priority Debts: Secured debts are debts tied to an asset. This is very commonly real estate, vehicles, or recreational items. Unsecured debts are debts that do not have a security interest. These are common, credit cards, medical debts, and payday loans. Priority debts are those creditors who are treated above unsecured debts. These are common, attorney fees for bankruptcy, domestic support obligations, or certain State and federal tax debts. 

 

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM 

If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!