Tulsa Bankruptcy Terms

Read about terms used with Tulsa Bankruptcy

Most people have never filed Tulsa bankruptcy. This means that the legal jargon and terms  of bankruptcy are often confusing. Hopefully after you read more, you will feel comfortable discussing bankruptcy with your attorney.

  • 341 Meeting: This required meeting allows creditors to review your financial situation and make sure your information is accurate
  • Assets: Any property of value (home, car, etc)
  • Automatic Stay: Court order keeping creditors from pursuing you for debt collection. Filed after you submit your petition
  • Bankruptcy: A legal method to eliminate/restructure debt
  • Chapter 7: Sometimes requires selling assets, but eliminates all debt in 3-5 months
  • Chapter 11: Allows small and large businesses to repay creditors and stay in business
  • Chapter 13: Creates a 3-5 year payment plan for debt and lets you keep your assets
  • Claims: A creditor’s right to be paid on debts
  • Confirmation Hearing: A Chapter 13 bankruptcy hearing where the court evaluates/approves your payment plan
  • Credit Counseling: A required class that teaches financial principles and budgeting practices
  • Discharge of Debt: The legal process of eliminating certain types of unsecured debts, such as credit card debt or medical bills
  • Exempt Assets: Property that is protected by law and cannot be taken and sold
  • Garnishment: Forced withdrawals from your pay to pay debt
  • Liquidation: When your assets are sold to pay for debts (such as in Ch 7)
  • Means Test: An income test to see if you qualify for Chapter 7 bankruptcy
  • Non-Exempt Assets: Assets that are likely to be sold or taken to pay for debts
  • Secured Debt: Debt that is backed by collatoral (house, car, or other tangible asset)
  • Trustee: The person legally responsible to oversee your bankruptcy case
  • Unsecured Debt: Debt that isn’t backed by tangible property or assets