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Confirmation Hearing: Is a hearing where the Bankruptcy Judge approves/ denies your Chapter 13 Repayment Plan.

Credit Counseling: Is a credit counseling class that helps you make sure that bankruptcy is right for you. You’ll review your finances. This is important because you will need it to file for bankruptcy.

Creditor: is someone (or entity) that has a right to payment or other remedy against/ from the debtor who is subject of the bankruptcy filing.


Debtor: is the person who files for bankruptcy.

Debtors Education: Known as the “Second” Course: You will have to take the second course 45-days after you meet with the Trustee. The course will provide you with financial management tools that you’ll be able to rely on after your bankruptcy is over. This is required to obtain a discharge.

Discharge: May occur during Chapter 7 or Chapter 13 bankruptcy proceedings; means that you no longer owe any money on that debt.

Dismissal: Means your bankruptcy case is closed. If your case is dismissed you’ve lost the protection of the automatic stay and you will continue to be liable for your debts.

Bankruptcy Glossary



Exempt Assets: Items that are not included in your bankruptcy filing.


Liquidation: When your assets are sold and the proceeds used to pay your debts.


Means Test: A test that uses certain parameters to determine whether a debtor may file Chapter 7 bankruptcy for a full discharge of debt. Individuals with too much income after certain expenses are prohibited from filing Chapter 7 unless they qualify as an exception.

Meeting of Creditors: A Hearing all debtor(s) must attend in any bankruptcy proceeding. The meeting allows the trustee to review the debtors petition and schedules with the debtor(s).


Nonexempt Assets: Items that are included in your bankruptcy filing, which may be repossessed and liquidated


Petition: A Bankruptcy Petition is the document filed by the debtor (filer) to initiate a bankruptcy case.


Reaffirmation: When you agree to new terms with your lenders during the bankruptcy process and do not seek to discharge your debt or cease your access to credit.


Secured Debt: Debt represented by collateral, such as an automobile or home. Secured creditors have the right to your collateral in the event you default on payments. Typically, secured debt is not fully discharged in bankruptcy and secured creditors are entitled to certain privileges


Trustee: Is an administrator who is assigned to your case by the US Trustee.


Unsecured Debt: Debt, such as credit card debt, that is not secured with collateral. During the bankruptcy process, creditors of unsecured debt are not able to repossess your personal property.

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