Most often when people are becoming involved in any type of legal situation it has its own legal jargon to it. This is no different with bankruptcy and if you are entering into this sort of debt relief you are going to be subjected to many different legal terms that you may not understand.
What has to be realized is that bankruptcy can be quite complex in regards to the laws, rules and regulations, and it is highly important to use the services of a professional such as a Louisville bankruptcy attorney that is totally familiar with this area of law.
Depending on the type of bankruptcy that you are going through you may hear different terms mentioned that you don’t talk totally understand. One of these terms is “assume”. This is an agreement to continue performing duties under a contract. This is something that you may hear if you are going under a Chapter 13 bankruptcy as you will be participating in a payment plan and agreeing to this.
Another common term is “automatic stay”. You may have found that there are some actions being taken against you by your creditors for your lack of payment. These could be foreclosures are garnishments, for example. With an automatic stay ordered by the bankruptcy court these legal actions have to be put on hold immediately until the bankruptcy has been completed. What will happen to them will be based on the outcome of the bankruptcy rulings itself.
When you are filing for personal bankruptcy your debts are referred to as “consumer debts”. These are personal debts and are not business ones.
If your bankruptcy case is somewhat complex you may hear the term “contingent claim”. This is a claim that the debtor owes such as a co-signer for example who signed for your loan that you have not been able to pay.
“Dischargeable debt” is a debt where your bankruptcy action will take your debts and remove your liability on a personal level to them. These are just a few of many different types of terms that you may hear through the bankruptcy process.