Common Bankruptcy Terms
Anyone who is under serious financial stress understands the frustrations that can be associated with handling overwhelming debts. When considering ways to consolidate debts and relieve pressures, an individual may investigate many different options. As you may have already discovered in your research, there is a significant amount of terminology that is unclear or unfamiliar to you. Gaining an understanding of common bankruptcy terms can be exceptionally helpful.
Helpful Terms to Know
Though the following list is certainly not exhaustive, it can serve as a helpful starting point as you attempt to sort through complicated information pertaining to bankruptcy:
- Liquidation – the sale of an individual or company’s assets, typically in an auction setting, in order to generate funds to distribute to creditors; this is associated with Chapter 7 bankruptcy filings in most instances
- Secured Debts – debts which a creditor has granted in exchange for the promise of some sort of collateral; in a mortgage, for example, the property itself is typically regarded as collateral and held under the control of the lender until the loan has been paid in full. A lending institution may be able to reclaim this property if a debtor defaults on the loan.
- Unsecured Creditors –creditors who have extended a line of credit or loan to a debtor without requiring the submission of collateral
If you or someone you love has questions regarding bankruptcy and would like to speak to a legal professional about your options, Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, may be able to help. Contact us at (239) 237-0675 to learn how bankruptcy may be able to help you to contend with financial obligations.