Undoubtedly, bankruptcy itself can be a very confusing process that will often introduce a debtor to a world filled with complex concepts and legal terms. Regardless, an experienced New Bedford bankruptcy attorney may be able to help debtors to prepare a lot better for personal bankruptcy by teaching them about some of the key terms involved.
When finances appear to be suffering under the weight of debt you may have acquired, the best solution may turn out to be a chapter 7 bankruptcy or chapter 13 bankruptcy, in order to help with your struggles. When it comes to finding out more information, New Bedford bankruptcy lawyer Brian R Lewis can be reached at 508-946-3323.
Those who face personal bankruptcy will need to know the following terms:
1: Asset Peoples’ assets are anything that they own. This can be a piece of property or less material things, including stock options and other property that can be traded or sold for money. Not all of you asset will need to be sold during bankruptcy and in many cases you can keep everything.
2: Discharge When it comes to bankruptcy terms, debt discharge happens when the court agrees to free the debtor from the debt they owe to a creditor. Once debt has been discharged, the debtor is no longer liable for the acquired debt.
3: Debtor and Creditor Debtors are people who have taken out loans, or use credit cards, which is similar to a consumer loan. The creditor is the institution which has provided the debt or backs up the credit card.
4: Insolvency Most of the time, this term is used with regards to different businesses. Occasionally, it is used when speaking about personal bankruptcies as well. This happens when a business or a person is unable to pay their debts back. Insolvency is what leads to bankruptcy.
5: Exemption During Chapter 7 bankruptcies, exemptions can help keep certain properties from being sold or foreclosed by the courts. If you have a piece of property that has been exempted, debtors will then be able to keep it throughout their bankruptcy.
If you are overwhelmed with debt and help call the Law Office of Brian R Lewis at 508-946-3323 today. Our experienced New Bedford bankruptcy attorneys can answer your questions and find the best option for your situation.