Learn About Common Bankruptcy Terms
At the Law Office of Patrick M. Noe, Jr., we believe that an attorney should educate clients. When you choose a lawyer from our law firm to handle your bankruptcy case, we will make certain that you are informed and involved.
To start with, we have included a handful of the common terms you will hear during the bankruptcy process and definitions of these terms:
ASSETS: Your home, car, bank accounts, cash, businesses and household goods are all considered assets. They are property you own or have a legal interest in.
AUTOMATIC STAY: This is the court order entered as soon as bankruptcy is filed that stops creditors from taking any further collection actions against you.
BANKRUPTCY ESTATE: This is the total of your legal and equitable interests at the beginning of your case. A bankruptcy trustee administers this estate for the benefit of creditors.
BANKRUPTCY PETITION: Legal papers that are filed with the court to initiate bankruptcy.
CHAPTER 7: This is the form of bankruptcy that eliminates many unsecured debts.
CHAPTER 13: This is the form of bankruptcy that allows the creation of a three to five year payment plan to eliminate unsecured debt.
CONSUMER DEBTS: Also referred to as personal debts, these are debts for individual or family expenses.
CREDITOR: The individual, business or organization that money is owed to.
DEBTOR: The party that owes the money to the creditor.
DISCHARGE: The legal term for eliminating debt through bankruptcy.
EQUITY: The value of an asset above and beyond what is owed for the asset and the cost of selling the asset.
MEETING OF CREDITORS: This is the bankruptcy hearing that debtors must attend. This is a very brief meeting scheduled for three to six weeks after bankruptcy is filed. It allows the trustee to formally verify your identity and ask a serious of standard questions.
PERSONAL PROPERTY: An asset that isn't real estate, such as a car or a boat.
SECURED DEBT: This is debt that a creditor has secured by collateral. If payments are not made, the creditor can collect the collateral. For example, if a car loan is not paid, the creditor can repossess the car.
TRUSTEE: The trustee is the person who is responsible for managing bankruptcy cases in the legal system.
UNSECURED DEBT: This is a debt that a creditor has not secured by collateral. An example is credit card debt.
From our office in Amherst, the Law Office of Patrick M. Noe, Jr. handles bankruptcy for people in Buffalo and throughout Western and Upstate New York.
To get the aggressive, professional and effective help you need from an experienced New York lawyer, contact the Law Office of Patrick M. Noe, Jr. in Amherst. We have successfully handled numerous cases for our clients — we can help you.
Call us toll free at 1-866-745-5168 or send us an e-mail for a free initial consultation.
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