Your Go-To Bankruptcy Glossary: Common Bankruptcy Terms Defined (Pt. 1)

May 8, 2015

Here are some straightforward definitions to common bankruptcy terms from an experienced Colorado Springs bankruptcy lawyer.

Here are some straightforward definitions to common bankruptcy terms from an experienced Colorado Springs bankruptcy lawyer.

This bankruptcy glossary provides straightforward definitions for some of the most common terms associated with the bankruptcy process.

If you are considering filing for bankruptcy to relieve your debt issues, understanding the terms that we’ll define in this two-part blog series can help you start to develop a better sense of what the bankruptcy process entails.

For more precise answers about your debt situation and your best options for resolving it, however, complete our Business or Consumer Debtor Analysis Form or contact experienced Colorado Springs Bankruptcy Lawyer Jon B. Clarke today.

Definitions of Common Bankruptcy Terms 

  • Automatic stay – An injunction or court order that protects people filing for bankruptcy (i.e., bankruptcy petitioners). The automatic stay will stop creditors from suing bankruptcy petitioners, garnishing their wages, repossessing their assets, and/or foreclosing on their homes. This is a powerful benefit of filing for bankruptcy.
  • Bankruptcy estate – A bankruptcy petitioner’s property at the time (s)he files for bankruptcy. The bankruptcy estate will include all property in which the petitioner has an interest, including property that may be jointly owned with another party.
  • Bankruptcy petition – The paperwork/document that is completed and submitted to the court to start a bankruptcy case. Bankruptcy petitions are official court forms, and they typically have to be submitted with supporting documentation.
  • Chapter 7 – Liquidation bankruptcy. With Chapter 7, consumers can obtain a discharge of certain debts (such as credit card debt, mortgage debt, etc.) in exchange for liquidating (or selling) their non-exempt property (with the proceeds going to pay back the creditors).
  • Chapter 11 – Reorganization bankruptcy. With Chapter 11, businesses can reorganize, streamlining operations, keeping the business going and repaying creditors over time.
  • Chapter 13 – A type of bankruptcy in which people (or businesses) develop detailed repayment plans for paying back their creditors over the course of 3 to 5 years. When people do not qualify for Chapter 7 because they make too much money, filing for Chapter 13 bankruptcy can be the next best option. At the Law Office of Jon B. Clarke, P.C., we do not currently oversee Chapter 13 cases, but we can refer you to someone who does (if needed).
  • Credit counseling – The instructional course people have to take before filing for bankruptcy. The credit counseling requirement is aimed at trying to help people figure out if pursuing an alternative to bankruptcy may be an option for them.

Be sure to check out the second part of this blog series for the second half of our bankruptcy glossary.

Colorado Springs Bankruptcy Lawyer at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact trusted Colorado Springs Bankruptcy Lawyer Jon B. Clarke.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy Glossary