If you're considering filing for bankruptcy, you've probably started to do a lot of research online. This is probably one of the biggest decisions you'll make. It's important to be certain you understand every aspect of bankruptcy and also that you consult with a professional when needed. Below are some terms that you will come across frequently when reviewing information on bankruptcy.
Bankruptcy Code
The commonly referred to name for the federal bankruptcy law, 11 U.S.C. §§ 101-1330.
Chapter 7
The particular chapter of the Bankruptcy Code that provides for discharge of debt. Clients typically retain all property.
Chapter 13
The specific chapter of the Bankruptcy Code that provides an individual who has regular income to adjust debts. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years. The payment that a debtor makes is determined by the debtor’s ability to pay.
Contingent claim
A claim that the debtor may owe under certain circumstance, like when the debtor is a cosigner on a loan for someone else and that person defaults.
Consumer debts
Personal debts, not those incurred for business needs.
Undersecured claim
A debt secured by property that is worth less than the full amount of the debt.
Unliquidated claim
A precise value has not been assigned to a claim.
Unscheduled debt
A debt that was not filed with the court but should have been. This debt is discharged in some cases.
341 meeting
Section 341 of the Bankruptcy Code requires a meeting of creditors during which the debtor is questioned under oath about his or her financial affairs. The U.S. trustee, creditors, a trustee, or an examiner can question the debtor.
Once you've mastered the lingo of bankruptcy, you'll be one step closer to making an educated decision on your next move. You should also consult with an attorney who has expertise and experience in the field of bankruptcy. Mr. Ron Londquist specializes in bankruptcy and has been handling bankruptcy cases since 1999. He's helped thousands of people get a fresh start allwith Chapter 7 or Chapter 13 bankruptcy. Contact Ron today to see how he can serve you.