West Palm Beach Bankruptcy Lawyer
Common Bankruptcy Terms
If you have never before had financial problems, you may be unfamiliar with certain key terms that are widely used in bankruptcy law. Eric N. Klein & Associates, P.A. are here to help you comfortably and fully understand bankruptcy basics so that you can make the best decisions for yourself regarding your current financial status.
- Bankruptcy: Legal process in which an individual owing a very large sum of debts comes to an agreement with the court system to restart his or her financial standing.
- Chapter 7 Bankruptcy: A form of bankruptcy in which a party’s debts are liquidated and then distributed to the owed creditors.
- Chapter 13 Bankruptcy: A bankruptcy plan in which debts are rearranged and adjusted so that a feasible repayment plan is reached between the debtor(s) and creditor(s).
- Creditor: A party who is owed money from another individual or company.
- Debtor: A party who owes money to another individual or business. This is the party who files for bankruptcy if necessary.
- Assets: Every piece of property (in any form) that a party owns.
- Nondischargable Debt: Any debt that will not be eliminated by filing for bankruptcy.
- Automatic Stay: An injunction stating that all payments owed by, foreclosures, or lawsuits filed against a debtor are put on hold (following the debtor’s filing for bankruptcy).
- Unsecured Claim: A claim/debt in which the creditor has lent the money to the debtor solely based on his or her discretion.
- Secured Debt: A debt backed by some sort of personal property, guaranteeing repayment to the creditor.
Contact Us
For more information on bankruptcy, please contact the West Palm Beach bankruptcy lawyer of Eric N. Klein & Associates, P.A. today at 561-353-2800.
