BANKRUPTCY TERMS
10 bankruptcy terms you should know
CREDITOR—One to whom money is owed.
DEBTOR—A person who owes money.
DISCHARGE—A release from personal liability for a debt.
EQUITY—The value of a debtor’s interest in property after liens and exemptions.
EXEMPTION—Property of an individual that is allowed to be kept.
LIEN—A secured interest through agreement or operation of law.
NON-DISCHARGEABLE DEBT—A debt that cannot be eliminated in bankruptcy.
PLAN (Applies to Chapter 13)—A debtor’s plan of action.
SECURED CLAIM—Debt backed by collateral.
TRUSTEE—The individual appointed by the bankruptcy court to protect creditors’
interests.