Fort Collins Bankruptcy Terms
Learn common terms used with Fort Collins Bankruptcy
The more you know about bankruptcy terms, the more you will feel comfortable discussing Fort Collins bankruptcy issues. This is a brief list of the most common terms that you will hear.
Learn the terms you need to know to communicate effectively with your attorney
- 341 Meeting: This required meeting allows creditors to review your finances to ensure that you qualify for bankruptcy
- Assets: An item of value, such as a house or vehicle
- Automatic Stay: A court order protecting you from creditors harassing you for debt collection purposes
- Bankruptcy: A legal way to eliminate debt or create easier debt payment schedules
- Chapter 7: A form of bankruptcy that allows you to eliminate all debt in 3-5 months. May require liquidating some or all assets
- Chapter 11: Allows small and large businesses to remain in business and restructure their debt payments to creditors
- Chapter 13: With Chapter 13 you can keep your assets, such as your home and vehicle, and make debt payments for 3-5 years
- Claims: A creditor has the right to collect on debts
- Confirmation Hearing: A Chapter 13 bankruptcy hearing where the court evaluates and approves of your debt payment plan
- Creditor: The entity to whom money is owed
- Credit Counseling: A required class that teaches financial principles and budgeting strategies
- Debtor: An individual or business that owes money
- Discharge of Debt: A process of completely eliminating debt
- Equity: The portion of property, such as a home or vehicle, that you own
- Exempt Assets: Property that is protected by bankruptcy law and cannot be seized
- Foreclosure: Property is seized by a creditor. Most commonly occurs with homes
- Garnishment: When a creditor takes money directly from your paycheck to pay off debts
- Liquidation: Assets are sold to pay off debts
- Means Test: A way to see if you qualify for income standards that meet Chapter 7 eligibility
- Non-Exempt Assets: Assets that may be sold or taken legally to pay for unpaid debts
- Payment Plan: A Chapter 13 benefit that allows you to space out debt payments over 3-5 years
- Petition: The document that you submit to the court to begin the process of filing bankruptcy
- Secured Debt: Debt that has collatoral to back it up (most common with mortgages and car loans)
- Trustee: The person legally responsible to oversee your bankruptcy case
- Unsecured Debt: Debt that usually has higher interest rates because it is not backed by physical assets such as a home or car