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Assets - Every form of property owned by a debtor.

Automatic Stay - A stay imposed by the court when a bankruptcy is filed that prevents creditors from taking collection actions against the debtor.

Bankruptcy - When a debtor who owes more than his or her assets relieves the debts by transferring his or her assets to a trustee and is relieved of the future obligation to repay unsecured debts.

Chapter 7 - This is a type of bankruptcy in which a debtors assets are liquidated to satisfy his credit obligations, which are removed at the completion of bankruptcy.

Chapter 13 - This type of bankruptcy allows a person to retain assets in exchange for making reduced payments in accordance a trustee-approved plan.

 


Collateral - An item of value that guarantees payment of debt or may be collected in place of payment

Collection Agency - A third party agency creditors use to collect debt. Sometimes a collection agency is a company set up by the creditor to collect debt. Also called a Credit Agency.
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