Glossary

Nonconsumer Debt - debt that is not primarily for personal, family, or household expenses, such as business and tax debt.

No-asset case - describes a case where all of the Debtor’s property is protected or exempt from sale, and there is no property to be liquidated.

Motion to Lift Automatic Stay - action by Creditor to remove the protection of the bankruptcy court so that it can foreclose or in some way take back its security and/or proceed against a co-debtor.

Meeting of Creditors - hearing where creditors and trustees have the opportunity to appear and question the Debtor regarding income, assets, or other matters.

Means test - a formula that aids in the initial determination of whether an individual is eligible for Chapter 7 bankruptcy.

Liquidation - sale of property. In Chapter 7 bankruptcy, the Chapter 7 trustee will sell property that you cannot protect through exemptions. He will divide the money up among your creditors. Chapter 7 bankruptcy is also called a liquidation bankruptcy.

Lien - a legal term describing when a creditor's interest in property that is secured.

Joint Petition - a term used to describe a bankruptcy filed by a couple, husband and wife.

Involuntary transfer - where a Debtor transfers a property interest, but the transfer is not of his own free will so to speak. Examples: wage garnishment or bank levy.

Insider (of individual) - defined by law as a person or business that debtor has a special relationship with, such as a business associate, or family member.