You may hear your attorney throw out quite a few terms in your bankruptcy case. What do they all mean?
Here is a list of the most common terms and their meanings:
341 Meeting: This is the hearing you attend with the Trustee. It takes, on average, 5-8 minutes. The trustee typically asks you yes or no questions.
Disposable Income: This is the income you have left over after you deduct your necessary and reasonable expenses.
Discharge: A discharge is what orders your personal liability on the debt included in your bankruptcy, gone. This happens at the end of your case.
Pre and Post-Petition: Pre-petition is before the case is filed, post-petition is after.
Reaffirmation Agreement: This agreement lays out the terms of debt in Chapter 7 bankruptcy and keeps your personal liability on the debt intact. Most commonly it is for secured debt. Typically a reaffirmation agreement is prepared by the creditor and signing it is optional. Reaffirmation agreements do not occur in a Chapter 13 bankruptcy.
Unsecured Creditors: Unsecured creditors are not secured to any property. Think medical, credit cards, and personal loans.
Exemptions: Exemptions are the law that protect your assets.
Certificate of Exemption: This certificate shows that your exempt property, belongs to you. You will typically need this if your home was exempt in the bankruptcy and you are now selling it.
Report of No Distribution: This report is something the trustee for a Chapter 7 case files to tell the Court there is nothing in the case that needs to be distributed to creditors.
There are a lot of legal terms that are thrown into a bankruptcy case, we can help you understand them. Visit www.kainscott.com to speak with an attorney today. You will be glad you did!
