Understanding Bankruptcy Terms: A Comprehensive Guide by Atlanta's Trusted Bankruptcy Attorney
Personal Bankruptcy Terms
Personal Bankruptcy
A legal process allowing individuals to eliminate or reorganize personal debts under federal bankruptcy protection, typically through Chapter 7 or Chapter 13.
Unsecured Debts
Debts not backed by collateral, such as credit card bills, medical bills, and personal loans, which can often be discharged in bankruptcy.
Creditor Harassment
Aggressive collection tactics by creditors, including repeated calls, threats, or inappropriate contact, which must stop once bankruptcy is filed.
Essential Assets
Property necessary for daily living and work, such as your home, car, and personal belongings, which can often be protected through bankruptcy exemptions.
Wage Garnishment
Legal process where creditors take money directly from your paycheck, which bankruptcy's automatic stay immediately stops.
Chapter 7 Bankruptcy Terms
Chapter 7 Bankruptcy
Known as "liquidation bankruptcy," this process eliminates most unsecured debts while protecting exempt assets, typically completing within 3-6 months.
Georgia's Means Test
A qualification requirement for Chapter 7 comparing your income to Georgia's median income to determine eligibility.
Bankruptcy Exemptions
Legal protections allowing you to keep certain assets during bankruptcy, such as equity in your home, car, or personal property.
Georgia's Exemption Limits
Specific dollar amounts of property you can protect in bankruptcy under Georgia law, including $21,500 homestead exemption ($43,000 for couples).
Chapter 13 Bankruptcy Terms
Manageable Repayment Plans
Structured 3-5 year plans allowing you to pay debts over time while keeping your property and catching up on missed payments.
Home Foreclosure
Legal process where lenders take property due to missed payments, which Chapter 13 can stop while providing time to catch up.
Consolidate Debts
Combining multiple debts into one monthly payment through a Chapter 13 plan, often with more favorable terms.
Co-Signers
People who guaranteed your debts, who can be protected from collection through Chapter 13's co-debtor stay.
Car Repossession
Seizure of vehicles due to missed payments, which bankruptcy's automatic stay can prevent or reverse if acted upon quickly.
Chapter 11 Bankruptcy Terms
Corporate Bankruptcy
Legal process allowing businesses to reorganize debts while continuing operations, typically through Chapter 11.
Restructure Business Debt
Reorganizing business obligations into more manageable payments while maintaining operations.
Negotiate with Creditors
Process of working with creditors to modify payment terms and conditions through the Chapter 11 process.
Protect Corporate Assets
Legal strategies to maintain business property and assets while reorganizing debt.
Sustainable Business Models
Reorganized business plans demonstrating long-term viability for court approval.
Additional Important Terms
Legal Advocacy
Professional representation protecting your rights throughout the bankruptcy process.
Emergency Bankruptcy Filings
Expedited bankruptcies filed to stop immediate creditor actions like foreclosure or repossession.
Collection Lawsuits
Legal actions by creditors seeking judgment for unpaid debts, which bankruptcy's automatic stay stops.
Creditor and Tax Resolution
Process of addressing and resolving debts owed to creditors and taxing authorities through bankruptcy.
Business Tax
Corporate tax obligations which may be restructured or paid over time through bankruptcy.
*This glossary provides general definitions. For advice about how these terms apply to your specific situation, please schedule a consultation.