Provo Bankruptcy Dictionary

Learn Important Provo Bankruptcy Definitions

• Creditor: The business or individual that is owed money by a debtor.
• Debtor: The business or individual that owes money to the creditor.
• Automatic Stay: This injunction stops the creditor from attempting to collect from the debtor. An automatic stay takes effect immediately after the debtor files for bankruptcy.
• Chapter 7: The Provo bankruptcy court seizes non-exempt assets owned by the debtor and sells them to pay the creditor. A Utah County Fresh Start bankruptcy attorney will help you protect your property in this process.
• Chapter 13: The Provo bankruptcy court permits the debtor to retain his or her assets. The court requires the debtor to make payments to the creditor according to a plan the court approves.
• Assets: The property a business or individual owns.
• Non-Exempt Assets: The property that the Provo bankruptcy court takes from the debtor and sells to pay the creditors.
• Exempt Assets: Property that state and federal laws protect. This property will not be taken from the debtor. A Utah County Fresh Start bankruptcy attorney will help you understand these laws and protect your property.
• Equity: The dollar amount that an asset can be sold for in excess of the money owed on the asset.
• Discharging Debt: This makes the debtor no longer legally responsible to pay the debt and removes it from the debtor's credit history. Debt discharge can be awarded by the Provo bankruptcy court.

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