02/23/2023
We know that all our legal jargon can make you 😵 so here are some quick explanations of common bankruptcy terms:
📖 Automatic Stay - Barring special permission from the bankruptcy court, all creditors must cease solicitation of payment for debt incurred after the bankruptcy filing for a predetermined amount of time.
📖 Bankruptcy Estate - All of your property, with the exception of educational trusts and most pensions. It includes items you’ve loaned to others, property you’ve recently given away, property you’re entitled to but haven’t received, and certain assets you receive within 180 days of filing.
📖 Proof of Claim - This is a document sometimes filed by creditors that lists your debt to them, what it’s worth, and whether or not it is secured. If you disagree, you will be required to file an objection in court.
📖 Unsecured vs. Secured Debt - Secured debt is backed up with collateral like home mortgages and automobile loans. Unsecured debt is not backed up with collateral (ex. hospital bills, credit card debt, student loans).
Have questions about another bankruptcy term? Comment down below!