Automatic Stay – This is the stay of any action against the debtor that goes into effect immediately upon the filing of a case, WHETHER OR NOT THE CREDITOR HAS NOTICE OF THE STAY. Punitive and compensatory damages are available for intentional violation of the stay.
Avoidance – The negation of a transfer of an interest in property of the debtor. Done by the trustee or the debtor, depending on the circumstances. Includes preferences and fraudulent transfers.
Claim – Any right to payment or right to an equitable remedy existing as of the bankruptcy; defined BROADLY.
Consumer Debt – Debt that is incurred primarily for family, personal or household use
Discharge – A remedy that provides an injunction against any in personam efforts to collect against a pre-bankruptcy debt.
Exemptions – The right of a debtor to keep property even though creditors are not being paid in full.
Means Test – The calculation to determine whether a client whose income exceeds the Median income for their state and family size can qualify for Chapter 7.
Median Income – The income, identified by the Office of the United States Trustee, above which a debtor will need to take the Means Test to determine whether they qualify for Chapter 7.
Petition – This is the petition that is filed by (voluntary) or against (involuntary) a debtor to commence a bankruptcy case.
Preference – The estate’s right to recover payments made by the debtor prior to the bankruptcy filing.
Proof of Claim – The document that is actually filed to evidence a claim. Entitled to prima facie validity unless challenged.
Trustee – The Chapter 7, Chapter 11, Chapter 13 or United States Trustee.