Do You Know These 3 Important Bankruptcy Terms?
Bankruptcy can be difficult to handle for a person just beginning this legal process. Not only will they need to bring together a significant amount of financial records and receipts, but they may also want to know more about the options available to them. By learning more about bankruptcy law and how it may affect them, a person can feel more confident about continuing with their own proceedings.
If you’re considering bankruptcy, an experienced legal professional may be able to help you with your case filing and any legal issues that may subsequently arise. For more information, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, today by calling (205) 324-4000.
Prepare Yourself for Bankruptcy
Before undergoing bankruptcy proceedings, a person should be familiar with the following terms and concepts:
This term is usually applied to businesses going through bankruptcy, but can describe personal bankruptcies as well. Insolvency occurs when a person can no longer afford to make their debt payments. At some point, the interest on their debt will overtake their income.
#2: Debtor / Creditor
Although a person may confuse these two terms, they’re fairly straightforward. A debtor is a person who owes someone else money. A creditor is someone who lends money to another person.
#3: Debt Discharge
When a person files Chapter 7 bankruptcy, they ultimately work to get their debts discharged by the court. If they can secure a discharge order, they no longer have to pay back their debts.
If your financial obligations have become unmanageable, bankruptcy might be the right solution for your household. To discuss your options in further detail with a knowledgeable lawyer, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, today at (205) 324-4000