Kansas City Bankruptcy Legal Definitions
Legal Terms for Kansas City Bankruptcy
- 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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