Raleigh Bankruptcy Terms
Learn commonly used terms for Raleigh bankruptcy
Understanding bankruptcy terms will help you feel comfortable with the Raleigh bankruptcy process. These are the main terms that you should learn.
- Assets: The total resources of the debtor
- Automatic Stay: This prevents creditors from trying to collect debt once you have filed for Raleigh bankruptcy,
- Chapter 7: Most debts are dischargable, however the bankruptcy court can sell the debtor’s non-exempt assets in order to pay off part of the debt owed.
- Chapter 13: a type of bankruptcy where you pay off debts over 3-5 years and keep your assets
- Creditor: The person or business to whom the debt is owed.
- Debtor: The person or business who owes money.
- Discharge of Debt: When the Raleigh bankruptcy court doesn’t require the debtor to pay certain debts.
- Exempt Assets: Assets or property of the debtor that cannot be taken away because of bankruptcy laws.
- Foreclosure: When the property of the debtor is given to the creditor.
- Garnishment: Payments to a creditor from a debtor’s bank account or wages. If you file for Raleigh bankruptcy, garnishments should stop.
- Non-Exempt Assets: Property of the debtor that are sold to pay creditors