Diana Metz`s Finance Blog

Once you have made the decision to go through the process of a do it yourself bankruptcy there are many words that you will begin to hear over and over. Some of these words may be legal jargon and some will be normal words that you will understand without the help of an advisor. It is very important to get a clear understanding of all the words that you will be hearing during this legal process. The main thing that you need to take away from this article is, if you do not understand something make it very clear to someone in the courts employment. You may have to contact a judge, a trustee, or an advisor.

Some of the most important words in the bankruptcy process are going to be discussed in this article. We’ll start with the different types of bankruptcy. Chapter 7 is the most commonly used bankruptcy, and it is available to anyone. You can use this type of bankruptcy to eliminate debt by using you assets to pay it off. The next type of bankruptcy is chapter 11, you can use this type of bankruptcy to pay off some or all of your debt to creditors and you may be able to continue to run your business or own your property as a fiduciary. Chapter 12 is not well known and is mostly for family farmers to pay off debt.  Chapter 13 is used to pay off some or all of your debt and will be over a period of 3 to 5 years. You will also need to know what assets are. Assets are any and every type of property that you own that can help pay off your debt. The creditor is the person or company that you owe money to. 341 meeting, this is a meeting in which the debtor (you) must meet with your creditors. The trustee is a court appointed person who has different roles under the different chapters of bankruptcy.

The explanation of these terms is meant to help you with the do it yourself bankruptcy. These terms will be used throughout this process and by understanding them it will make the process easier for you to complete.