When you are considering filing for bankruptcy as a way to gain a financial fresh start, you may hear some terms and phrases that you aren’t familiar with, particularly when it comes to the legal aspects of processing your case. To clarify some of these and help easy your stress and you prepare to file for bankruptcy, here and in a few additional parts of this blog, we will provide some straightforward definitions of some of the most commonly used bankruptcy terms.
If you have questions about your specific situation or would like to explore whether other debt relief options may be a better choice for you, you are encouraged to contact trusted Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler.
Bankruptcy Terms Defined
- Automatic stay – An injunction or a court order that immediately goes into effect when a person files for bankruptcy. This court order effectively stops creditors from contacting or attempting to take any legal action against borrowers (like, for instance, by suing them, repossessing their property, foreclosing on their home or garnishing their wages). An automatic stay, however, cannot reverse some legal actions against the borrower that are already in place (for example, it cannot reverse an existing wage garnishment).
- Bankruptcy code – Federal bankruptcy law that specifically pertains to Chapter 11 cases (11 U.S.C. §§ 101-1330).
- Bankruptcy estate – All of the interests, assets and property that a person owns at the time he files for bankruptcy. Some property can be exempt from the bankruptcy estate (per state or federal bankruptcy exemptions), such as a borrower’s home, vehicle(s), work tools and some personal items. When borrowers jointly own assets with other people, these assets will usually be included in the bankruptcy estate. How the bankruptcy estate is handled/overseen (and whether any part of it is liquidated to pay off creditors) will depend on the nature of a person’s bankruptcy case, as well as his outstanding debts.
- Bankruptcy petition – The official documents filed with the court to initiate a bankruptcy case.
Look for the second and third parts of this blog for some more easy-to-understand definitions of commonly used bankruptcy terms.
Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC
If you are buried in overwhelming debt or are facing a serious financial crisis, Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler can help you figure out your best options for resolving your financial issues.
Since 1979, Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been providing both individuals and businesses with the highest quality of legal services when it comes to debt relief and bankruptcy. From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be trusted to maximize utilization of Colorado Bankruptcy Law to effectively guide his clients through bankruptcy and help them achieve the best possible outcomes to their cases.
Contact Us for a Free Consult
For a free 30-minute consult, contact us by calling (303) 691-9774, or email us using the form on this page. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.