Your Go-To Bankruptcy Glossary: Common Bankruptcy Terms Defined (Pt. 2)

May 18, 2015

Resuming Your Go-To Bankruptcy Glossary: Common Bankruptcy Terms Defined (Pt. 1), here, we’ll continue to define some more important bankruptcy terms.

More Bankruptcy Terms Defined

  • A trusted Colorado Springs bankruptcy lawyer clearly defines some more common bankruptcy terms. Contact us for help getting out of serious debt.

    A trusted Colorado Springs bankruptcy lawyer clearly defines some more common bankruptcy terms. Contact us for help getting out of serious debt.

    Discharge – The elimination of the personal liability for certain debts (i.e., dischargeable debts). When a debt is discharged through bankruptcy, a person is no longer responsible for repaying it. Examples of debts that can be discharged via bankruptcy include credit card debt, mortgage debt, medical bill debt, etc. This is a major benefit of filing for bankruptcy, as it can provide people with a financial fresh start.

     

  • Exemptions – The property that will not become part of the bankruptcy estate. In other words, exempt property is property that people can keep through/after the bankruptcy case. In Colorado, exemptions can be used to save homes, vehicles, and other personal property (as long as that property meets the value requirements).
  • Joint petition – A bankruptcy petition filed on behalf of spouses.
  • Liquidation – The selling off of a debtor’s property in order to repay that person’s creditors. This occurs with Chapter 7 bankruptcy, and it will not impact exempt property.
  • Means test – A standard formula used to determine whether someone is eligible for Chapter 7 bankruptcy. The means test will essentially evaluate a person’s income versus his expenses to see if he is eligible for Chapter 7.
  • Non-dischargeable debt – Debt that cannot be eliminated through bankruptcy. In general, non-dischargeable debt includes certain tax debts, spousal support debts, child support debts, restitution debts, etc.
  • Secured debt – Debt that is backed by collateral, a lien or a mortgage. Car loans and mortgage loans are two of the most common types of secured debts.
  • 341 meeting – The meeting of a person’s creditors during a bankruptcy case. During a 341 meeting, the debtor can be asked about his debts and/or financial affairs by creditors, the bankruptcy trustee or others.

Of course, these are not the only terms that may be important to know when it comes to bankruptcy. For more bankruptcy terms and definitions, check out the dictionary put together by the U.S. Courts.

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 a trusted Colorado Springs bankruptcy lawyer at the Law Office of Jon B. Clarke, P.C.

Our Colorado Springs bankruptcy attorneys bring more than 35 years of experience to our clients’ cases, making them effective at successfully resolving even the most complex bankruptcy cases on behalf of individuals and businesses alike.

Contact Us Today

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