Bankruptcy Glossary: Discharge
A bankruptcy debtor's "discharge" is the court-ordered forgiveness of his or her debt obligations. Obtaining a discharge is the primary reason people file for bankruptcy.
Read MoreRepossession 101: What Creditors Can and Can’t Take
If you fall behind on your loan payments, you may be worried that the creditor can repossess something you own - like your car, your home, or even your new refrigerator. "Repossession" happens when a creditor takes back the property you pledged as collateral for a loan due to your default under the loan agreement. There are strict rules as to what a creditor can and cannot take if you default on a loan.
Read MoreWhat Will Happen to My Home and Car If I File for Bankruptcy?
There are several ways that you can keep your car or home after you file a Chapter 7 bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. This is called reaffirming a debt. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the legitimacy of the debt.
Read MoreBankruptcy 101: What is Chapter 7 Bankruptcy?
Filing chapter 7 bankruptcy doesn't involve the filing of a repayment plan like chapter 13 bankruptcy. Instead, the chapter 7 trustee sells your nonexempt assets and uses the proceeds of the sales to pay your creditors in accordance with the rules outlined in the Bankruptcy Code. Bankruptcy laws allow debtors in Colorado and Oregon to keep certain "exempt" property, but the bankruptcy trustee will liquidate any remaining assets.
Read MoreWhat Is Secured Debt?
A debt is "secured" if you stand to lose a specific piece of property if you stop paying the bill. Secured debt is secured by "collateral," which is the property you pledged to give up by signing your loan papers. Once you receive a loan in Colorado and Oregon, your lender obtains what is called a "security interest" in your collateral -- common examples of debts secured by collateral include mortgages and car loans.
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