New here? Start with these articles to learn about US bankruptcy, debtor bankruptcy
alternatives like debt consolidation, debt settlement, debt negotiation, and debt management.
You'll also learn the causes of debts that can lead you to file bankruptcy and how to recover
from it.Definition of Debtor Bankruptcy Terms
Bankruptcy has its own language. This glossary of bankruptcy terminology provides a brief definition of the legal terms used in this site and in cases filed under the US Bankruptcy Code.
adversary proceeding
A separate lawsuit filed in the bankruptcy court which arises to the debtor’s bankruptcy case. One example is a complaint to find out the dischargeability of a debt or legality of liens.
automatic stay
The injunction issued automatically upon filing of a bankruptcy case which stops all collection actions against the debtor, the debtor’s property or the property of the estate. Some examples of collection actions are foreclosures, garnishments, attachments, lawsuits, collection calls and letters, and even monthly bills. Creditors may be liable for damages if they violate the automatic stay. It is the automatic stay that stops a sheriff’s sale of the debtor’s property after filing the bankruptcy petition.
