Salt Lake City Bankruptcy Terms

Learn common terms used with Salt Lake City Bankruptcy

As you consider filing Salt Lake City bankruptcy, you can familiarize yourself with the most common bankruptcy terms. The more you know, the more confident you will be in the process of bankruptcy.

  • 341 Meeting: Mandatory meeting for Chapter 7 and 13 where you analyze your finances with your creditors
  • Assets: Property that you own that has value
  • Automatic Stay: Court order protecting you against unwanted debt collections from creditors
  • Bankruptcy: A way to legally eliminate (discharge) debt that is overwhelming
  • Chapter 7: Also known as liquidation bankruptcy, Chapter 7 gives you a clean start with all debt eliminated, but sometimes requires forfeiting some assets
  • Chapter 11: For businesses, this type of bankruptcy allows profitable businesses to continue to operate with different debt payment conditions
  • Chapter 13: Creates a new debt payment plan that lasts 3-5 years and allows you to keep your assets
  • Confirmation Hearing: A court hearing for Chapter 13 where you evaluate your payment plan for feasibility and fairness
  • Credit Counseling: An inexpensive, required class that shares information on budgeting, debt, and financial management
  • Discharge of Debt: The process of liquidating or eliminating debt
  • Exempt Assets: Property that is protected by law from being taken to pay for debts
  • Garnishment: A court order to take a portion of your wages to pay for debts
  • Liquidation: Assets are sold or taken to pay off debts owed to creditors
  • Means Test: If you are below a certain income, you can qualify for Chapter 7 bankruptcy
  • Non-Exempt Assets: Assets that are not protected in a bankruptcy case
  • Secured Debt: Debt associated with tangible, collateral assets like a home or car
  • Trustee: The person legally responsible to oversee your bankruptcy case
  • Unsecured Debt: Debt not associated with tangible assets or collateral

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