Kansas City Bankruptcy Legal Definitions

Legal Terms for Kansas City Bankruptcy

kansas city bankruptcy terms

Learn about bankruptcy legal terms

  • Debtor: The person who is in debt.
  • Creditor: The person or business a debt is owed to.
  • Automatic Stay: Once a debtor files for bankruptcy in Kansas, the court prevents creditors from trying to collect more money from the debtor.
  • Chapter 7: Most debtors declaring bankruptcy in Kansas file under chapter 7. If in such a case there are non-exempt assets, the trustee may sell them and give the money to the creditors.
  • Chapter 13: Filing chapter 13 bankruptcy in Kansas generally allows debtors to keep even non-exempt assets and make payments to creditors according to a payment schedule that lasts 3-5 years. Your attorney will help you decide which chapter is best for you.
  • Assets: The debtor’s property–both real estate and other things of value.
  • Exempt Assets: Property on which creditors have no claims in Kansas. Skilled attorneys can protect more, if not all, of your property under exemption.
  • Non-Exempt Assets: Property exposed to creditor’s claims in Kansas.
  • Trustee: A representative of the creditors’ interests appointed by the court.
  • Discharge of Debt: By court order creditors of discharged debt are forever prohibitted from collecting.
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