Glossary

Fresh start - the goal of bankruptcy is to permit an honest, but unfortunate Debtor to begin again without overwhelming debt.

Exemption - specific protection of certain types of property from liquidation or sale in a bankruptcy case. There are state exemptions and federal exemptions. How these apply is complex and varies depending on the facts of the case. For more information about exemptions in Texas, read Holding On to Your Property in Bankruptcy. [...]

Executory contract or lease - a legal obligation that has all or a part left to be performed.

Estate - when the petition is filed, all of the Debtor’s interests, both legal and equitable constitute the bankruptcy “estate.” If there are non-exempt assets, the creditors are paid from the liquidated proceeds. In a Chapter 13, the estate includes earnings of the Debtor up until the Chapter 13 plan is paid in full. Interests [...]

Equity - ownership interest over and above a debt. For example, if your home is worth 100,000 and your mortgage is 90,000, you would have 10,000 in equity.

Emergency filing - this is when a bankruptcy case is filed without all the complete paperwork due to an urgent situation, such as a threatened foreclosure or a repossession.

Domestic support obligation - a debt owed as a result of a marriage, such as child support or alimony.

Dismissal - when a case is ended prematurely. For example, a Debtor in a Chapter 13 bankruptcy may choose to dismiss his case if he loses his job. This would be an example of a voluntary dismissal. There are also involuntary dismissals, where the Judge orders the case to be dismissed or to end.

Dischargeability - whether or not a debt is eligible for discharge. Certain debts are not eligible to be discharged. Some examples are fraud-based debts, some types of taxes, and most student loans.