Bankruptcy Law - Burton Law Firm based in Houston, TX

The Burton Law Firm, P.C. has over 15 years of experience in this area of the law. If you have questions about this subject please call us at 713-222-6262; or email Randy Burton at randy@burton-lawfirm.com or David Torok at david@burton-lawfirm.com.

General Law - Bankruptcy

What is an adversary action?
Under a Bankruptcy action, there can be other actions filed by either a creditor, the trustee or the debtor. Some of these actions are adversarial in nature since both parties to the action are on opposite sides.
What is an asset?
An asset is anything of value whether it be tangible (material) or intangible (goodwill, personality, etc.)
What is an attachment?
An attachment is a legal proceeding carried out by a governmental agent to seize or take possession of property.
What is automatic stay?
A provision in the federal bankruptcy law that makes it illegal for creditors to make any attempt to collect a debt once a person files for bankruptcy. Creditors must then ask the bankruptcy court’s permission to resume collection efforts.
What is meant by a blue book?
A common term for books that list the market value of various types of property, such as cars and boats.
What is Chapter 7 bankruptcy?
A chapter of the bankruptcy code providing for the discharge of debts.
What is a Chapter 11 bankruptcy?
A chapter of the bankruptcy code that was originally designed for corporations and partnerships, but may also be used by individuals with secured debts over $750,000; unsecured debts over $250,000; and, sufficient income to pay off a portion of these debts over several years.
What is a Chapter 13 bankruptcy?
A chapter of the bankruptcy code allowing a debtor to create a plan to repay some or all of his or her debts.
Is there such a thing as a Chapter 20 bankruptcy?
Not really. This is not an actual chapter of the bankruptcy code. It is a commonly used term for the situation where a debtor first files a Chapter 7 bankruptcy case, and once all dischargeable debts have been discharged, then files a Chapter 13 bankruptcy case to restructure payments on the debts that were not discharged in the Chapter 7 case. The terms derives from adding the numbers 7 and 13 from the two types of bankruptcy cases.
Who is a co-debtor?
A person who is jointly obligated with another to repay a debt.
What is community property?
A type of property ownership, created by statute in some states, in which property is owned in common by a husband and wife as a kind of marital partnership.
What is a contingent debt?
A debt that will only be owed upon the occurrence of some future event.
What is a co-signed debt?
A debt that a second party agrees to pay if the first party fails to pay.
What is meant by a cram-down?
This is a phrase used to define the redeeming of property secured by a creditor’s lien at its market value.
Who is a creditor?
One who is owed a debt.
Who is a debtor?
A debtor is a person or entity who owes a debt to another (the creditor). Also, the person who files for bankruptcy.
What is a discharge?
One of two things: (1) the elimination of an obligation to repay a debt or (2) the release of a debtor from further oversight by the bankruptcy court at the end of a bankruptcy case.
What are dischargeable debts?
Debts that may be discharged in a bankruptcy proceeding.
What is a disputed debt?
A debt that the debtor does not believe is owed or in which there is a disagreement over the amount owed.
What is execution?
The legal process of carrying out a court order, decree or judgment. Generally, there are two types of executions, namely, a special execution and a general execution. A general execution is one that does not name any particular property of the judgment debtor, but can be executed against any property found to be owned by the judgment debtor. A special execution is one that is directed against specific property of the judgment debtor.
What is an executory contract?
A contract in which the obligations of either or both parties have not been completed.
What is meant by exempt property?
Property that may not be taken and sold to satisfy a debt.
What is fee simple title?
Fee simple title describes the ownership of real property when the owner has absolute title to the property.
What is foreclosure?
The legal process of taking real estate in order to satisfy a debt secured by a mortgage.
What is future interest?
An interest in real property, whereby possession will occur in the future (such as after a life estate is completed).
How is homestead defined?
A person’s primary home and place of residence, which, in most states, is wholly or partially exempt from the claims of creditors (unless the creditor holds a mortgage on the property).
What does In Re stand for?
This is a legal phrase that means ‘In the matter of”.
What is an involuntary bankruptcy action?
A bankruptcy action that is filed by a creditor against the debtor.
What is a judgment?
A final determination by a Court of Law on the matter before it.
Who is a judgment creditor?
A creditor who has obtained a judgment against the defendant in a court action.
Who is a judgment debtor?
The person or entity who has a judgment against them as a result of losing a court action.
What is a judgment lien?
A judgment lien is a lien arising from a court judgment, which is usually recorded in the public records. The lien affixes to all real property owned by the judgment debtor, with certain limitations.
What is liability?
An obligation or responsibility to another for either money owed or performance under a contact.
What is a lien?
A lien is a legal claim or encumbrance against the property of another, for example, a realty mortgage lien, a judgment lien, a tax lien, a labor lien, etc.
What is lien avoidance?
A procedure, in certain cases and in certain states, whereby a debtor is allowed to keep property that would otherwise be subject to repossession.
What is a life estate?
An interest in land, whereby the person holding the life estate is allowed the use of the land during his or her life. Upon that person’s death, the land goes to someone designated by the original owner.
What are non-dischargeable debts?
Debts that may not be discharged in a bankruptcy proceeding.
What is nonexempt property?
Property that is not exempt from the claims of creditors.
What is a nonpriority claim?
The claim of a creditor who is not the type of creditor given priority for payment by the bankruptcy code.
What is a possessory lien?
A possessory lien is a lien that affixes to property as a matter of law.
What is a priority claim?
The claim of any creditor given priority for payment by the bankruptcy code.
What is process?
Process is legal notice from the court that an action has been filed and that the effected parties must appear and defend. Legal notice can be in the form of a summons, writ or any other document signed and sealed by the court clerk.
What is proof of service?
Proof of service is simply an affidavit, certification or declaration by a party that legal service was completed upon the party entitled to receive such papers. In the case of mailing, the proof of service is completed by the party mailing the papers and then filed with the court, together with the mailing receipt.
What kinds of property exist?
There are basically two types of property, real and personal. Real property is land, buildings, or other permanently fixed structures or things attached to the land or building. Personal property, on the other hand, is moveable property, like a vehicle, clothing, furnishings, stocks, bank account, property contracts, personality contracts, jewelry, etc.
What is a purchase money lien?
A purchase money lien is an ownership lien created under an installment purchase contract that includes provisions, whereby the seller reserves unto himself (or whichever the case may be) the right of title to the property until the seller fully satisfies the terms of the contract.
When does reaffirmation occur?
When a debtor agrees that a debt will still be owed after bankruptcy even though the debt could have been discharge.
When does redemption occur?
When a debtor and creditor agree that the debtor will pay a certain sum and will be allowed to keep an item of property that secured the debt. In essence, the debtor is buying back the property.
What is repossession?
The legal process of taking personal property (such as a car or household furniture) in order to satisfy a debt secured by the particular item of personal property.
What is a secured debt?
A debt that is guaranteed by a particular piece of real or personal property whereby the creditor may take the property if the debt is not repaid.
What is a setoff?
An amount owed by a creditor to a debtor which is applied to reduce the amount of the debt owed.
What are tools of trade?
The legal term for items of property used in a person’s business trade, or profession.
Who is a trustee?
The court appointed person who oversees a bankruptcy case.
What is an un-liquified debt?
A debt that is recognized by both debtor and creditor but the exact amount owed is yet to be determined.
What is an unsecured debt?
A debt that is not guaranteed by any particular piece of real or personal property
What is a wage-earner plan?
A common name for a Chapter 13 bankruptcy.

Unless otherwise indicated, attorneys listed in this site are not certified by the Texas Board of Legal Specialization. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.