Bankruptcy

court procedure that prevents creditors from seeking independent repayment of debts incurred before the petition was filed

court process by which a debtor, which can be an individual or a business entity, seeks protection from its creditors

debtor's property rights and interests once a bankruptcy petition is filed

person appointed to make payments to creditors and oversee the ownership of the debtor's property for the benefit of the creditors

restructuring bankruptcy chapter for business entities; involves an agreed-upon repayment plan by the debtor and creditors

restructuring bankruptcy chapter for individuals; involves an agreed-upon repayment plan by the debtor and creditors

most common form of bankruptcy; used for individuals and businesses

property used to secure a loan with the understanding its owner will forfeit it in the event of default of the loan

release of a debtor from the amount owed to a creditor to avoid personal liability

certain debt that is considered an option for complete release from creditors

2010 federal law put into effect after the 2008 financial crisis; it puts restrictions on financial institutions to protect consumers

property or asset that the debtor can keep during and after bankruptcy proceedings, as approved by the court

legal process a creditor uses to secure outstanding debt by forcing the sale of an asset—typically, real estate

order issued and mandated by a court, directing a third party to seize money or property for payment of debts; typically used with wages

security interest granted for an asset or property on behalf of a creditor by a debtor

process of converting assets into cash to pay off creditors

debt that cannot be settled through bankruptcy, such as federal loans, taxes, child support, and other federal or state debts

official form to file to seek relief from creditors under federal law; includes voluntary and involuntary bankruptcy

order in which claims are paid in a bankruptcy proceeding, with higher-priority claims paid first

document filed with a court by a creditor to confirm and verify the amount owed

act of a creditor seizing an asset of a debtor, which was used as collateral to secure a loan, when the loan has defaulted

debt that has collateral to be used in the event of default or used to secure the creditor's interest

loan or debt without collateral, such as credit card debt