Bankruptcy Terms Explained
If you are facing financial difficulty and considering bankruptcy protection you want to educate yourself on the process and terms before moving forward. Here at Keegan & Company our attorneys will take the time to explain the process in plain English.
Following is an explanation of the most common terms.
BANKRUPTCY – A legal procedure for businesses and individuals to eliminate debt.
BANKRUPTCY PETITION – The document filed with the bankruptcy court to open a bankruptcy case.
CHAPTER 7 – The chapter of the bankruptcy code in which you eliminate unsecured debts.
CHAPTER 13 – The chapter of the bankruptcy code in which you will pay back a portion of your debts over a three to five year period.
BANKRUPTCY TRUSTEE – The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee. The trustee’s responsibilities include reviewing the debtor’s petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7, the trustee may liquidate property of the estate, and makes distributions to creditors, although this is relatively rare.
AUTOMATIC STAY – An injunction that automatically stops lawsuits, foreclosures, garnishments and all collection proceedings against you the moment the bankruptcy petition is filed.
341 MEETING OF CREDITORS – The meeting required by section 341 of the Bankruptcy Code at which the debtor is questioned under oath by a trustee about his/her financial affairs. Also called creditors’ meeting. Currently, this meeting is held over the phone at our office.
EQUITY – The value of a debtor’s interest in property that remains after liens and other creditors’ interests are considered.
The offices of Keegan & Company Attorneys provide free consultation, fair fees and monthly payment plans. We allow plenty of time for you to sit down with an experienced attorney to discuss your individual situation. Our attorneys will guide you toward the best path to solve your unique problems. Fees are based on your individual situation and will be quoted at the consultation. During and after your case, we are available to gladly answer any of your questions. Call 513-752-3900, to schedule your free, no obligation consultation.