Since bankruptcy is a legal procedure, many of its terms can be confusing, especially to those people who are considering filing for the first time. Below are terminologies people should know when considering filing for bankruptcy:
- Insolvency means that a person or a business can no longer settle their debts where in some situations the interests of their debts are higher than their income.
- Debtor means any person who owes money to someone else.
- Creditor means anyone, usually a financial institution that lends money to other people.
- Debt discharge means that individuals no longer have to settle their debts, given that the court grants them a “discharge order” after filing for Chapter 7 Bankruptcy.
If you want to know more about the above mentioned terminologies or you have decided to file for bankruptcy in Birmingham, a lawyer from the Greenway Bankruptcy Law, LLC may help you. Call our office today at (205) 324-4000 to find out how we may legally assist you in the filing process.