Bankruptcy is a fantastic tool for all those who cannot pay off their debts. Fortunately, bankruptcy may be available to you, as long as you hire an experienced bankruptcy attorney who can assess your situation and help you create a plan going forward. However, bankruptcy is an involved process, so it is best you do some reading up to familiarize yourself with what’s to come. As you read, you will come across several legal terms that may not yet know. This is why we have compiled a basic list of some of the most common bankruptcy terms that you should know. If you are considering filing for bankruptcy in the state of New Jersey, please read on to learn more:
- Chapter 7: Chapter 7 bankruptcy is a liquidation bankruptcy, which means that many of your possessions will be sold to repay your existing debts. Chapter 7 bankruptcy is the most popular form of bankruptcy in the United States.
- Chapter 13: Chapter 13 allows debtors to keep their property, while establishing a 3 or 5-year payment plan to pay back all their debts.
- Automatic stay: When you file for bankruptcy, an automatic stay is issued, which immediately seizes all collection activities
- Credit counseling: To file for chapter 7 or chapter 13 bankruptcy, you must attend and complete a session of credit counseling, which is an instructional course designed to teach debtors how to manage their finances responsibly
- 341 meeting: Also known as the meeting of creditors, it is here that debtors meet with the trustee appointed to oversee the case.
- Dischargeable debt: Debts that can be forgiven via filing for bankruptcy
- Equity: The amount of remaining interest in your property after liens and creditor’s actions are evaluated
- Lien: The right to manage a debtor’s property as security or payment for a debt
- Nondischargeable debt: Debts than cannot be eliminated via bankruptcy, such as student loans, alimony payments, child support, and more.
- Secured debt: Any debt backed by a mortgage
- Trustee: The representative of your bankruptcy estate that is a private or individual or corporation. A trustee will review your petition and bring actions against creditors to recover property of the bankruptcy estate
Contact our experienced New Jersey firm
Before taking legal action, it is important to discuss your legal situation with an experienced attorney. Divorce means a significant change in your life, which is why you need a knowledgeable and compassionate attorney who can help make the transition go as smoothly and seamlessly as possible. If you need a knowledgeable attorney, please do not hesitate to contact The Radol Law Firm to discuss any divorce and family law matters you may be facing.