Knowing your bankruptcy terminology is very important in understanding your legal proceedings.
The following is a continued list from Bankruptcy Terms and Definitions-Part 1:
Motion to Lift the Automatic Stay-A creditor’s request to take an action against a debtor or the debtor’s property that would otherwise be prohibited by the automatic stay.
No-Asset Case-A chapter 7 case where there are no assets available to satisfy any portion of the creditors’ unsecured claims. In a no-asset case all of the debtor’s property is exempt or subject to valid liens.
Objection to Discharge-A creditor’s objection to the debtor’s release from personal liability for certain dischargeable debts.
Priority Claim-Apriority claim is an unsecured claim that is entitled to be paid ahead of other unsecured claims that are not entitled to priority status. Priority refers to the order in which these unsecured claims are to be paid.
Proof of Claim-A written, official statement describing the exact reason a debtor owes a creditor money.
Reaffirmation Agreement-An agreement to a creditor by a chapter 7 debtor to continue paying a dischargeable debt after the bankruptcy, usually for the purpose of keeping the collateral or mortgaged property.
Relief from stay-A creditor can ask the judge to lift the automatic stay and permit some action to be taken against the debtor or the property of the estate. If the motion is granted, that particular creditor (but no one else) is free to take whatever action the court allows.
Secured Debt-Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default. Secured debt reduces the risk associated with lending because the creditor can seize the property themselves and sell it to recoup any losses.
Statement of Intention-A declaration made by a chapter 7 debtor concerning plans for dealing with consumer debts.
Substantive Consolidation-Putting the assets and liabilities of two or more related debtors into a single pool to pay creditors.
Undersecured Claim-A debt secured by property that is worth less than the amount of the debt.
Unliquidated Claim-A claim made by a creditor for which a specific value has yet to be determined.
Unscheduled Debt-A debt that should have been listed by a debtor in the schedules filed with the court but was not.
While these terms give a basic understanding of the bankruptcy process, you will want to contact a Killeen and Waco bankruptcy attorney to help guide you through your bankruptcy proceeding.
Jeff Davis is the Owner of the Davis law firm and a highly experienced Killeen and Waco bankruptcy attorney. To find out more information about a Killeen or Waco bankruptcy lawyer, please visit www.jeffdavislawfirm.com.