Bankruptcy Terms (Benita)
Terms
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- Assets offered as collateral to guarantee payment to a creditor.
- Secured Debt
- No specific assets are pledged by the credit user as security for a credit purchase.
- Unsecured Debt
- A debtor is declared bankrupt by a court at the request of creditors.
- Involuntary Bankruptcy
- A person asks to be declared insolvent (bankrupt).
- Voluntary Bankruptcy
- Property the law allows a debtor to keep or protect in declaring bankruptcy.
- Exempted items
- An essential element to protect debtor rights.
- Legal Advice
- An agreement to repay some debts after bankruptcy proceedings are completed.
- Reaffirmation
- The balance of debts no longer owed after bankruptcy.
- Discharge