Important Legal Terms/Bankruptcy
Bankruptcy is a unique legal area. It is almost entirely regulated by federal law and uses distinct, specialized terminology that derives from federal law. Here is a summary of some important bankruptcy terms. *Automatic Stay Aside from getting a discharge, a primary purpose of filing bankruptcy is the automatic stay. An automatic stay is a feature of bankruptcy law that goes into effect immediately upon filing a bankruptcy petition. It forces creditors to stop all collection efforts against the debtor, such as lawsuits, foreclosures, repossessions, garnishments, and evictions, thus allowing the debtor the time and opportunity to find solutions and obtain a...
Continue reading