Glossary

Schedules - these are documents filed as part of the bankruptcy process where the Debtor lists all assets and all debts.

Relief from Stay - when a Creditor is permitted by the Court to take action to collect debt or regain collateral. The stay may also be lifted to permit other litigation to proceed, such as a divorce proceeding. Many times, relief from the stay is conditional depending on the performance of the debtor.

Redemption - this is the procedure in a Chapter 7 bankruptcy where the Debtor pays the replacement value of property to the creditor (not the amount due on the account). A redemption is required to be made in a lump sum payment, and not under installments. The debtor must bring a motion and obtain a [...]

Real Property - real property is generally land, and ownership interests associated with land, such as oil and gas leases and timeshare interests.

Reaffirmation agreement - this is an agreement entered into between the Debtor and creditor in a Chapter 7 bankruptcy where the Debtor agrees to continue to be legally liable for the debt even after the bankruptcy discharge. Reaffirmations are required where a Debtor wants to keep a secured item, such as a car.

Purchase money security interest - type of lien formed when a person borrows money or charges on an account to buy a specific piece of property.

Property of the Estate - when a bankruptcy is filed, an estate is created. Property that is not exempt is property of the estate. In specific circumstances, property acquired after the Petition is filed may be the property of the estate (unless it can be exempted in some way.) There are rules in every [...]

Projected disposable income - term used that essentially means how much money is available to pay general, unsecured creditors. Considerations include how much a Debtor will earn in the future less reasonable and necessary expenses.

Priority Debt - a specific category of certain types of debt. Priority debt is paid before other types of debt, such as unsecured debt. Domestic support obligations and certain tax debt may be priority debt.

Pre-petition - before the bankruptcy is filed.