Missouri Bankruptcy Terms
Before a person files Missouri bankruptcy, it is important that he or she understand a variety of bankruptcy terms. People use many terms that they do not use in everyday language. A good Missouri bankruptcy attorney will help you understand these new terms so that you understand what is going on in your bankruptcy.
Some of the most common Missouri bankruptcy terms are:
- Creditor: The person or business who is owed money by the debtor.
- Debtor: The person or business who owes money to the creditor.
- Assets: Any property owned by a person. This can be a house, land, car, home furnishing, cash, etc. This is important to understand because the court will require that you list all your assets on your Missouri bankruptcy documents.
- Automatic Stay: A legal order sent to all your creditors once you file your bankruptcy petition. This order prohibits your creditors from trying to contact you in any way or collecting from you in any way. An automatic stay will stop phone calls, wage garnishments, foreclosures or anything else that a creditor is doing to try to collect from you.
- Chapter 7: The most common type of Missouri bankruptcy that people file. In this type of bankruptcy the court requires that a person gives up any non-exempt assets before the court give them a discharge of debt. With the help or our Missouri bankruptcy attorneys most of our clients are able to keep most if not all their assets.
- Chapter 11: Normally businesses will file a Chapter 11 bankruptcy. This bankruptcy is a reorganization bankruptcy and is similar to Chapter 13 bankruptcy. Chapter 11 allows business to reorganize their debts and remain in control of their business so that they can become a profitable company.
- Chapter 13: This type of Missouri bankruptcy is common for individuals to file. Chapter 13 bankruptcies will normally last from 3 to 5 years. Additionally, the person filing bankruptcy is required to pay off a portion of their debt before the court gives them a discharge of debt.
- Discharge: A legal order from the Missouri bankruptcy court that says you no longer have to pay the debts that the court discharges. The court will not discharge all debt and the best way to determine whether the court will discharge your debts is to come in and evaluate your situation with a Missouri bankruptcy attorney.
- Exempt Assets: The assets that the bankruptcy court will not take when a person files Chapter 7 bankruptcy.
- Non-exempt Assets: Assets that the court will take and sell when a person files Chapter 7 bankruptcy.
- Bankruptcy Petition: The legal Missouri bankruptcy documents that you submit to the court to file bankruptcy.
Missouri Bankruptcy Attorney Help
Let the St. Louis Bankruptcy Center help you understand bankruptcy. Our Missouri bankruptcy attorneys are experienced and know how to help you. Fill out our free bankruptcy evaluation today for a free consultation.
