Kansas City Bankruptcy Terms

Common terms used in the Kansas City bankruptcy process

Understanding Kansas City bankruptcy terms will help you feel ready to file bankruptcy. The more you know, the better you can communicate and understand attorneys and others as you discuss legal matters.

It is important to understand these common bankruptcy terms

  • 341 Meeting: This mandatory meeting with creditors allows them to review your financial claims to make sure they are truthful
  • Assets: Items and possessions that you own of value
  • Automatic Stay: A court order for creditors to desist debt collections immediately
  • Bankruptcy: The process of eliminating/restructuring your debts
  • Chapter 7: A type of bankruptcy that liquidates some assets and all debt in 3-5 months
  • Chapter 11: A type of bankruptcy for businesses to help them restructure debts and stay in business
  • Chapter 13: A type of bankruptcy where you create a custom payment plan for 3-5 years and keep your assets
  • Claims: A creditor’s right to be paid for debts owed to them
  • Confirmation Hearing: A Chapter 13 court hearing involving your payment plan and whether or not it needs revision prior to implementation
  • Creditor: The entity to whom money is owed
  • Credit Counseling: A mandatory class on debt, budgeting, and finance
  • Debtor: The person or business that owes money
  • Discharge of Debt: The elimination of debt through bankruptcy
  • Equity: The amount of your assets that you own
  • Exempt Assets: Assets that cannot legally be taken in a bankruptcy process
  • Foreclosure: When property (usually a home) is repossessed by the lender
  • Garnishment: When wages are automatically taken out of your account to pay for debts
  • Liquidation: When an asset is sold or taken to pay for debts (common in Chapter 7)
  • Means Test: An income requirement that you must pass to qualify for Chapter 7
  • Non-Exempt Assets: Assets that can be liquidated or sold to pay for debts
  • Payment Plan: A 3-5 year plan for Chapter 13 where you repay your debts
  • Petition: The document that is submitted to court to commence the bankruptcy process
  • Secured Debt: Debt associated with tangible objects that can be repossessed
  • Trustee: The official in charge of overseeing your bankruptcy hearing
  • Unsecured Debt: Debt not associated with tangible objects
Free Consultation
Get Our Advice and Feedback
We'll help you know your financial options, decide between Ch.7 and Ch.13, and answer all of your questions.
Get Started