Common Bankruptcy Terms
Bankruptcy is a powerful legal tool for individuals who are struggling with debts that they are unable to repay. Unfortunately, this area of law can be exceedingly difficult to understand and navigate, particularly for those without a legal background. Understanding some of the common terms associated with bankruptcy may be a helpful first step for individuals who are considering securing bankruptcy protection.
If you are struggling to manage your outstanding financial obligations, an experienced legal professional can help you understand your rights and options under the law. Contact the Cedar Rapids bankruptcy attorneys of Hong Law, PLC today at (319) 294-5853 to discuss your case with a qualified member of our legal team.
Terms Used in Bankruptcy
The following is a partial list of some of the most frequently used terms in bankruptcy cases:
- Asset – any piece of property owned by the debtor.
- Automatic Stay – the automatic cessation of certain legal actions (including debt collection, lawsuits, and foreclosures) upon a debtor’s filing for bankruptcy.
- Exemptions – assets or property owned by the debtor which cannot be collected by creditors during the bankruptcy process.
- Liquidation – the sale, typically by auction, of debtor property in order to pay back creditors.
- Non-dischargeable Debt – debts which cannot be eliminated through the bankruptcy process (e.g., student loans, spousal support, etc.)
- Unsecured Claim – a debt or claim in which the creditor provided a loan without any collateral backing.
These are just some of the many different terms with which an individual should be familiar when pursuing bankruptcy protection.
If you are considering filing for bankruptcy, it is important to choose an attorney who understands the process and is committed to helping you get the financial relief you are looking for. Contact the Cedar Rapids bankruptcy lawyers of Hong Law, PLC at (319) 294-5853 today to learn more about how we may be able to help you.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office