Important Bankruptcy Terms
Over a million people file for bankruptcy every year, but despite these numbers, many individuals are still unsure about this process and do not know how to begin. Fortunately, just knowing more about the common terms associated with bankruptcy can help you feel more comfortable about utilizing this legal tool to reach financial freedom. Additionally, a knowledgeable Houston bankruptcy lawyer from the Russell Van Beustring P.C., can go over your situation and help you determine if bankruptcy is right for you.
Understanding Key Bankruptcy Terms
There are several key terms that you should understand before filing for bankruptcy, as they can help you determine if this process can help you or if you should consider alternative methods like debt settlement. Some common bankruptcy terms include:
- Dischargeable debt – a debt that can be discharged means that it can be cleared or “forgiven” through the bankruptcy process
- Undischargeable debt – a debt that remains despite filing bankruptcy
- Liquidation – under Chapter 7 bankruptcy, selling property to pay back debts
- Automatic stay – the automatic stay refers to a debtor’s ability to prevent any debt collection from happening for a specific amount of time during bankruptcy
Though this is not the only bankruptcy jargon you will learn, these terms can help you get started in better understanding the overall process.
Contact a Bankruptcy Attorney in Houston
At the Russell Van Beustring P.C., our Houston-area attorneys can help guide you through Chapter 7, Chapter 13, Chapter 11, or even business bankruptcy. To learn more about how we can help you, contact our offices today at 713-973-6650 and discuss your situation with a knowledgeable member of our legal team.