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Bankruptcy Law Terms
To learn more about Bankruptcy Law terms, look below; or you can go to the Bankruptcy Page or the Bankruptcy Law Information Page.
- Creditor – companies and people who you owe money to. Creditors can be secured or unsecured.
- Credit Counseling Course – Class that you must take before filing for bankruptcy. It must be taken from an approved credit counseling agency. A list of approved credit counseling agencies can be found at Credit Counseling Agencies in Maryland.
- Debtor – the person filing for bankruptcy.
- Discharge – this is what happens at the end of your bankruptcy case; it means your dischargeable debts are gone.
- Dischargeable debts – these are the debts that are gotten rid of in a bankruptcy; they include credit cards, personal loans, and medical bills. Also see non-dischargeable debts.
- Equity – if you were to sell your house or car and get money back from it after paying off a loan on it, you have equity in it.
- Financial Management Course – course you must take from a credit counseling agency after you file your bankruptcy but before it is discharged. Here is a list of approved Credit Counseling Agencies in Maryland.
- Living expenses – include your mortgage payment or rent, BGE, water bill, phone bill, cable, cell phone, internet, food, medical co-pays, car payments, insurance, gas for your car, clothing, dry cleaning, recreation, charitable contributions, taxes, alimony or child support, etc. It does not include credit card payments.
- Means Test – implemented in the 2005 Bankruptcy law; in order to file a chapter 7 bankruptcy, you have make under the median income for your household size in Maryland or show why your expenses are higher than average (which is hard to do). You can find the Median Income here. The income goes back six months.
- Non-Dischargeable debts – these are the debts you will still have to pay after a bankruptcy; they include student loans, taxes, child support or alimony, debts incurred as a result of fraud or for causing an injury while drunk or on drugs. See Title 11 Section 523 Also see dischargeable debts.
- Reaffirmation Agreement – a written agreement between you and a creditor (usually a secured creditor) that you want that debt, usually a mortgage or a car payment, to survive the bankruptcy. This agreement lets you keep your house or your car after your bankruptcy.
- Secured Creditor – a company that you owe money to that kept an interest in the property you bought so that they can take the property if you don't pay. For example, your mortgage company or car loan company. See also Unsecured Creditors.
- Secured Debt – the money that you owe to a company that kept an interest in the property you bought so that they can take the property if you don't pay. For example, your mortgage on your house or the note on your car. See also Unsecured Debt.
- Trustee – the person representing the US Government in your bankruptcy case
- Unsecured Creditor – a company that you owe money to that did not keep an interest in the property you bought. For example, most credit cards. This is the opposite of a Secured Creditors.
- Unsecured Debt – the money that you owe to a company that loaned you money based only on your ability to pay. For example, most credit cards and personal loans. Medical bills are also unsecured debt. See also Secured Debt.