Bankruptcy INK

Over the next few weeks we will post common bankruptcy and foreclosure legal terminology so when you are doing research or begin filing you can have a better understanding of the jargon involved.

E

Effective Date
The point at when the plan of reorganization commences.

Equity
The value of a debtor's interest in property that remains after liens and other creditor interests are considered.

Examiner
A court appointee with responsibilities to oversee certain parts of the proceedings.

Executory Contract or Lease
Includes contracts or leases under which both parties in the agreement have duties remaining to be performed.

Exemptions (Exempt Property)
Certain property owned by an individual debtor that the Bankruptcy Code or applicable state law permits the debtor to keep from unsecured creditors.

F
Fair Credit Billing Act (FCBA)
The federal law that gives you rights when an error occurs on your credit card statement.

Fair Credit Reporting Act (FCRA)
The federal law designed to prevent inaccurate information from entering or remaining on a credit report.

Fair Debt Collections & Practices Act (FDCPA)
The federal law that outlaws unfair debt-collection practices by debt collection agencies.

Family Farmer or Family Fisherman
An individual engaged in the business of farming or fishing who meets certain debt limits and other statutory criteria for filing a petition under Chapter 12.

Fee Examiner
Court appointee responsible for monitoring money as planned is paid to the proper professional organizations.

Forbearance
Voluntarily refraining from doing something, such as asserting a legal right.

Foreclosure
The forced sale of real estate to pay off a loan on which the owner of the property has defaulted.

Forfeiture
The loss of property (or a privilege) due to breaking a law.

Fraud
Intentionally deceiving another person causing that individual or business to suffer a loss.

Fraudulent Transfer
A transfer of a debtor's property made with intent to defraud or for which the debtor receives less than the transferred property's value.

Fresh Start
The characterization of a debtor's status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.)

G

Garnishment
Court ordered method of debt collection where a percentage of an individual’s salary is paid to a creditor.

Grace Period
A period of time when an individual does not have to make payments on a debt.

Guarantor
A person who makes a legally binding promise to pay another person's debt if the person they signed for defaults.