A

341 Meeting (Meeting of Creditors)
A required meeting between you and your creditors, held about 20–40 days after your bankruptcy is filed. The trustee runs the meeting. Most last 3–4 minutes. See the full 341 Meeting page.

Arrears
The amount that is unpaid and overdue as of the date your bankruptcy is filed. Commonly refers to back child support, back alimony, or past-due mortgage payments (including interest and penalties).

Asset
Personal property of value — including cash, real estate, vehicles, and investments.

Automatic Stay
The immediate suspension of collection actions the moment your bankruptcy petition is filed. Creditors cannot continue lawsuits, garnishments, foreclosures, or collection calls. This protection arises automatically by law — no court order is needed.

B

Bankruptcy
A legal process under federal law that gives individuals and businesses overwhelmed by debt a chance to start over — either by discharging debts or by reorganizing them into a repayment plan.

Bankruptcy Code
The federal statutes governing bankruptcy — Title 11 of the United States Code. Bankruptcy is a matter of federal law and is mostly the same in every state (exceptions include exemptions).

Bankruptcy Court
The federal court where bankruptcy cases are filed and decided.

Bankruptcy Estate
Generally, all property you own that is subject to the jurisdiction of the bankruptcy court. Exempt property is removed from the estate.

Bankruptcy Petition
The document filed with the court to start a bankruptcy case. It includes schedules of assets and liabilities, income and expenses, and other required forms.

Bar Date
The last date creditors may file a claim against the debtor.

C

Chapter 7
Liquidation bankruptcy — the most common type for individuals. Non-exempt assets may be sold by a trustee, and most unsecured debts are discharged. Typically lasts about 3–4 months. See Chapter 7 page.

Chapter 11
Reorganization bankruptcy, generally used by businesses. The debtor usually stays in control of operations unless the court appoints a trustee.

Chapter 12
Bankruptcy for family farmers and fishermen. Requires debt under a set limit and at least 50% of income from farming or fishing operations.

Chapter 13
Reorganization bankruptcy for individuals with regular income. Debts are repaid over 3–5 years through a plan. Lets you keep property, catch up on missed mortgage or car payments, and reduce some unsecured debt. See Chapter 13 page.

Claim
A creditor's right to repayment from the debtor. Claims may be secured or unsecured, and have different priorities.

Collateral
The property securing a loan (e.g., a house secures a mortgage). A creditor with rights in collateral is a secured creditor. General rule: "First in time, first in right."

Confirmation
Final approval by the bankruptcy court of a debtor's repayment plan (usually in Chapter 13).

Conversion
Changing the chapter of a bankruptcy case — for example, converting from Chapter 13 to Chapter 7 (or vice versa).

Creditor
The person or organization to whom the debtor owes money or has a legal obligation.

Credit Report
A report outlining a person's credit history, public records, and creditworthiness.

D

Debtor
The person or entity filing for bankruptcy protection.

Default
Failure to pay a debt according to its terms. The most common default is nonpayment of principal or interest.

Delinquency
Failure to make payments when they are due. Most lenders report a payment to credit bureaus when it is more than 30 days late.

Denial of Discharge
A penalty for debtor misconduct (such as hiding assets or making false statements). When discharge is denied, debts that could have been discharged cannot be discharged in a future case.

Discharge
The court's order eliminating your legal obligation to pay certain debts. Usually granted about 4 months after filing in Chapter 7, or at the end of a Chapter 13 plan.

Dischargeable Debts
Debts that can be eliminated in bankruptcy. Certain debts are not dischargeable — student loans, child support, alimony, recent taxes, and debts from fraud.

Dismissal
Termination of a bankruptcy case. Can happen if the debtor fails to comply with requirements, or if the court determines the case should not proceed.

E

Equity
The difference between the value of a property and the amount still owed on its mortgage and other liens. A homeowner's financial interest in a property.

Exempt Property
Property that is protected from creditors and removed from the bankruptcy estate. Florida has its own exemption rules — including a homestead exemption — that let you keep certain property after filing.

Exemptions
The lists of property types and values that are legally beyond the reach of creditors or the bankruptcy trustee. Determined by state and federal statutes.

F

Fair Market Value
The highest price a willing buyer would pay, and the lowest price a willing seller would accept, when neither is forced to act.

Filing Fees
Court fees paid to the U.S. Bankruptcy Court to file your case. With the court's permission, filing fees may be paid in installments. Fees change periodically — always verify with the court. See the Filing Costs page.

Foreclosure
The legal process by which a lender repossesses a home when the borrower defaults. Filing bankruptcy triggers an automatic stay that pauses the foreclosure.

Fraudulent Conveyance
Transferring valuable assets to avoid paying creditors — for example, giving away property before filing. Can result in the discharge being denied.

Fresh Start
The goal of bankruptcy: eliminating overwhelming debt so you can rebuild financially with a clean slate.

G

Garnishment
A court-ordered method of debt collection where a portion of your wages is paid directly to a creditor. Bankruptcy stops most garnishments.

General Unsecured Claim
A creditor's claim without priority, where the creditor holds no collateral. If funds remain in the estate, these claims are paid in proportion to their size. Most credit card debt is general unsecured.

I

Insolvency
The financial state in which liabilities exceed assets, or the debtor cannot meet obligations as they come due. Not the same as bankruptcy — bankruptcy is a legal declaration of insolvency.

Involuntary Bankruptcy
A bankruptcy initiated by creditors (at least three creditors with unsecured claims totaling a set amount) rather than by the debtor. Very rare.

J

Joint Petition
A single bankruptcy petition filed by a husband and wife together. Only one set of filing fees is charged.

L

Lien
An interest in property that secures a debt. May be voluntary (like a mortgage) or involuntary (like a judgment lien or tax lien).

Liquidation
The sale of a debtor's assets to pay creditors. Chapter 7 is the liquidation chapter.

M

Means Test
A calculation used to determine whether you qualify for Chapter 7. It compares your income to the median income in Florida for a household your size. If your income is too high, you may need to file Chapter 13 instead.

N

No-Asset Case
A Chapter 7 case where the debtor has no non-exempt property for the trustee to sell. Most Chapter 7 cases are no-asset cases — the filer keeps everything they own.

Non-Dischargeable Debt
A debt that cannot be eliminated through bankruptcy — including most student loans, child support, alimony, recent taxes, and debts from fraud or DWI injury.

P

Priority Claim
A claim that must be paid before general unsecured claims — including administrative expenses, back wages, and certain tax claims.

Proof of Claim
A form creditors file with the court stating how much they are owed. The trustee and debtor can object to improper claims.

R

Reaffirmation
An agreement to remain personally liable for a specific debt after bankruptcy (often used for a car loan). Must be approved by the court.

Redemption
Paying a secured creditor the fair market value of the collateral to keep the property, rather than continuing to owe the full loan amount.

S

Secured Debt
A debt backed by collateral (like a mortgage or car loan). If you don't pay, the creditor can repossess or foreclose on the collateral.

Schedules
The official forms listing your assets, liabilities, income, and expenses. Required as part of your bankruptcy petition.

Statement of Financial Affairs
A required form giving a detailed overview of your financial history — including income, payments, transfers, and lawsuits.

T

Trustee
A court-appointed official who oversees your bankruptcy case. In Chapter 7, the trustee can sell non-exempt assets and distribute proceeds to creditors. In Chapter 13, the trustee collects your plan payments and distributes them.

U

Unsecured Debt
A debt not backed by collateral — like credit card debt, medical bills, or personal loans. These are typically dischargeable in Chapter 7.

V

Voluntary Petition
A bankruptcy filed by the debtor themselves (the vast majority of cases).

Note: This glossary is provided for general information only. It is not legal advice. Some terms have specific legal meanings that vary by jurisdiction and situation. For legal advice about your specific case, consult a licensed attorney.