Salt Lake Bankruptcy Terms and Definitions

Terms and Defintions

• Debt:Any money or property owed to a lending entity.
• Asset:Possessions or property owned by a person(debtor).
• Debtor:A person who owes money to a lending entity(creditor).
• Creditor:The entity to whom the debtor owes money.
• Chapter 7:Common type of bankruptcy. Known as liquidation bankruptcy. The court takes all non-exempt assets to sell in order to disperse amongst creditors.
• Chapter 13:Consolidation bankruptcy. The debtor makes payment for the space of 3-5 years. The court approves the payment plan which allows the debtor to catch up on payment.
• Non-Exempt:Possessions or property that may be taken by the court.
• Exempt:Possessions or property that cannot be taken by the court. The court allows you to keep some possessions to help you after bankruptcy
• Petition:Document signed by the debtor and the filed with the Salt Lake bankruptcy court. This starts the bankruptcy process.
• Automatic Stay:An order issued by the court. This stops creditors from harassing you and stops them trying to recover your debts.
• Trustee:A person appointed by Salt Lake bankruptcy court to act as a judge in the bankruptcy process. The trustee represents the creditors interest.
• Discharge:The Salt Lake bankruptcy court will release you from your debts. You are no longer required to pay the debts that have been discharged.

Contact Our Salt Lake Bankruptcy Attorneys

For more infromation about Salt Lake bankruptcy contact us. We can help you understand the process of bankruptcy so that your experience is less confusing.

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