Do You Know These 5 Important Bankruptcy Terms?

There is no question that bankruptcy can be a confusing process that often introduces a debtor into a world of legal jargon and complex concepts. However, an attorney can help a debtor better prepare for bankruptcy by educating them about some of the key terms and ideas in bankruptcy.

If your finances are suffering under the heavy weight of debt, bankruptcy may be an appropriate solution to your current struggles. For more information regarding your options when heading into bankruptcy, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.

Understanding the Law, One Term at a Time

As a debtor facing bankruptcy, the following terms are important to know:

#1: Asset

A person’s assets are the things they own, whether these are physical pieces of property or less direct things, such as stock options, which may be sold or traded for money.

#2: Discharge

In bankruptcy terms, a debt discharge occurs when the court agrees to free a debtor from their debt to a creditor. When the debt is discharged, the debtor is not longer considered liable for the debt.

#3: Debtor and creditor

A debtor is a person who takes out a loan or uses a credit card, which is like a consumer loan. A creditor, on the other hand, is the institution that provides that debt or backs that credit card.

#4: Insolvency

This term is more commonly used when talking about businesses, but is occasionally talked about in personal bankruptcies. Insolvency occurs when a person or business cannot pay back their debts any more. Generally, insolvency will lead a person into bankruptcy.

#5: Exemption

In Chapter 7 bankruptcies, an exemption keeps a certain property from being foreclosed or sold by the court. If a piece of property is exempted, the debtor will get to keep that property through bankruptcy.

Contact Us

If you are unable to pay your debts and need help fast, bankruptcy may the right option for you. To discuss your rights during bankruptcy, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.