What is Bankruptcy?
Bankruptcy is a legal process that allows individuals or businesses who are unable to repay their debts find relief. It provides a way to either eliminate or restructure debts while under the Bankruptcy Court's protection. The goal of bankruptcy is to give the debtor a fresh start while ensuring that creditors are also treated fairly. There are different types of bankruptcy, each with their own specific rules and benefits.
If you are tired of dealing with creditors harassing you and want help to get back in control of your finances, we would be honored to help.
Please contact us today at (757) 222-5842 to schedule an initial consultation. An attorney will sit down with you to learn about your situation and tell you about your available options.
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Key Bankruptcy Terms
Below are some phrases you may come across while learning more about bankruptcy.
Trustee
The Trustee helps oversee the administration of a bankruptcy case. Some of their responsibilities include collecting payments, monitoring case activity and reporting to the court about if the debtor is meeting their case requirements.
Debtor
A debtor is the individual(s) or business who is filing bankruptcy. They are the end user that is seeking protection under the bankruptcy code and filing to get a fresh start.
Automatic Stay
The Automatic Stay is a court-ordered injuction that (usually) goes into place when a bankruptcy case is filed. It stops most collection activities by creditors. This includes garnishments, foreclosures and repossessions.
It gives the debtor protection and room to breathe while they reorganize their debts.
Bankruptcy Exemptions
Bankruptcy Exemptions change depending on your state. They allow a debtor to protect their assets (home, bank accounts, cars, etc) from creditors while they are going through their case.