One of the most well-known aspects of the legal profession is that lawyers use a lot of specialized terminology, often disparagingly called “legalese.” Here at Groff Law Firm, PLLC, we understand that dealing with legal matters can be a stressful experience, especially for things like bankruptcy, and that encountering a bunch of unknown terms can easily add to that stress. To help alleviate some of that anxiety and prepare you to make informed decisions about your financial well-being, in this article, we’ll be going over some key terms you’ll encounter in bankruptcy law.
One of the first decisions you’ll have to make in your bankruptcy law proceedings is which type of bankruptcy to file–chapter 7 or chapter 13. With chapter 7 bankruptcy, most of your general unsecured debts, such as credit cards, will be wiped away. You won’t have to agree to a gradual repayment plan, but you may be required to sell some of your assets to pay back your creditors. (Assets are things you own or may own in the future, like a house for which you’re paying the mortgage. Creditors are the people to whom you, the debtor, owe money.) With chapter 13 bankruptcy, on the other hand, you won’t have to sell anything, but will need to provide proof of your monthly income in order to form and stick to a repayment plan. We at Groff Law Firm, PLLC can help you assess your situation to decide which of these options is best for your needs.
If you have further questions about bankruptcy law, you can always consult with our experts to get the grounded legal advice you need. We encourage you to reach out to us at Groff Law Firm, PLLC if you want to learn more.