Glossary of Terms

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Automatic Stay	The term automatic stay refers to the hold that is put on all collections activity upon the filing of any bankruptcy petition.

Discharge	When a bankruptcy case is completed, most of the filing person's debts are discharged. When a debt is discharged, the debtor is no longer legally obligated to pay that debt.

Trustee	A trustee is an attorney hired by the federal government to oversee the bankruptcy estate. In Chapter 7 cases, the trustee reviews the bankruptcy petition, interviews debtors a the Meeting of Creditors, and would be one of the people who could raise an objection to the bankruptcy. In Chapter 13 cases, the trustee reviews the proposed payment plan, distributes any money that the debtor pays into the court amongst the creditors, and more or less oversees the case.

Automobile Deficiencies	When an automobile is repossessed, the creditor often will sell that vehicle at auction. When this happens, the creditor usually does not receive full value for the vehicle. What funds the creditor does receive are applied toward the debtor's loan. If the amount received by the creditor from the sale of the vehicle is less than the amount that the debtor owed on the vehicle, the creditor can still pursue the debtor for the difference. The difference in the amounts is called a deficiency.

Petition	The petition is the actual paperwork submitted to the court which asks the court for the discharge of the debt and outlines the debtor's assets, income and debt. The filing of the petition begins the bankruptcy case.

Summons	A summons is a document sent out by the court, which orders a person to appear in court.

Garnishments	After a creditor has receive a judgment, that creditor may then go to the debtor's employer and ask that a portion (up to 25% for creditors other than the IRS) of the debtor's wages be given directly to the creditor holding the judgment. Only one creditor can garnish a person's wages at one time.

Judgments	A judgment is a court order in which a judge finds in favor of a creditor. The judgment basically states that the creditor holds a valid clam against a debtor.

Bankruptcy Estate	Upon filing a bankruptcy case, all of the assets of the debtor pass into the bankruptcy estate. The bankruptcy estate is managed by the trustee. Under either state or federal law, a debtor is allowed to exempt some assets. Exempting an asset is basically removing that asset from the bankruptcy estate and thereby retaining ownership of that asset.

Meeting of Creditors	About one month after a bankruptcy petition is filed, a hearing is held where the debtor goes before the trustee assigned to his case. The debtor takes an oath and then the trustee asks the debtor questions regarding his or her financial circumstances. At the hearing, creditors are allowed to ask the debtor questions as well. Usually this hearing lasts an average of five minutes.

Post-Petition	The time from when the bankruptcy petition was filed, going forward.

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* Home visits are typically available within a fifty mile radius of the major metro areas. The Bottom Line is that you will not spend a 'dime' out of pocket for our law firm to represent you. The only way our law firm gets paid any money is if you get back back benefits. Out of the back benefits, the Social Security Administration withholds 25% of that and sends it directly to our office to pay your Attorney's Fees. You keep the remaining 75%. 99% of our clients that win their claim receive a back benefits check from Social Security. The average back benefits check paid to our clients is about $6,000 - $9,000. Now, if you receive back benefits that amount could be more or less depending on an individual's case. Remember this is only an example, but it is likely that you will receive some money for back benefits if we won your case.

**Filing fees to the U.S. Bankruptcy Court have to be paid up front at the time your petition is filed. Chapter 7 $306. Chapter 13 $281.

***For Chapter 7, a guarantor of attorney fees is required for the $0 down payment plan.

"Typically we can help clients with financial difficulties. However, results may vary."