Glossary of Bankruptcy Terms

Facing the possibility of bankruptcy can be a scary situation for anyone. Many people who file for bankruptcy do not feel well informed about the bankruptcy process, and may feel intimidated by what seems like an overwhelming procedure. The experienced New Orleans bankruptcy attorneys of Kervin & Young, LLC understand the reservations that you may have about the bankruptcy process and are prepared to help you with your financial issues.

Below is a list of terms and their definitions to help you become acquainted with the jargon that is commonly used in bankruptcy cases:

Assets: All of the property that a debtor owns, such as income, bank account funds, vehicles, houses, land, stocks, etc.

Automatic Stay: A protective order that goes into effect as soon as an individual files for bankruptcy. This prevents creditors from pursuing the debtor for payment while the bankruptcy is pending.

Creditor: An individual or entity who loans money out and to whom the debtor owes money. Typically creditors loan money out to individuals or entities under the agreement that it will be paid back by a set date or in set increments over time.

Debtor: Anyone who owes money to another person or entity. Whether the outstanding debt is small or large, on a credit card or in a mortgage, any person with debt is classified as a debtor. The debtor is the individual who files for bankruptcy.

Liquidation: The process of selling a debtor’s property to collect funds owed to creditors.

Knowing some of the key terms that you will see frequently during a bankruptcy proceeding can help to orient you to the legal process. Consulting with a bankruptcy attorney can also help to clarify the complexities of your case and help you feel more comfortable with bankruptcy formalities and procedure.

Contact Us

To learn more about bankruptcy proceedings and how you can work towards a more secure financial future, please contact the experienced New Orleans bankruptcy lawyers of Kervin & Young, LLC today at 504-599-5906.