Bankruptcy isn’t the least complicated legal process, and the jargon that goes along with it doesn’t help. While our lawyers are here to help you understand every step (and word) in the bankruptcy process, here are a few common terms to know when getting started.
Creditor: A business or entity who has lent money and who is owed repayment by a person.
Liquidation: The sale of a person’s property in order to gain proceeds to repay creditors.
Claim: A creditor’s assertion of a right to repayment by the person who borrowed.
Nondischargeable Debt: A payment by a creditor that requires repayment and cannot be disregarded.
Transfer: How a person parts with their property during the bankruptcy process.
For a full list of common bankruptcy terms, visit the District of New Jersey bankruptcy glossary.