Relief can be absolute, for example, permitting the creditor to foreclose on property, or limited, as for example, allowing the recordation of a notice of default. The debtor must file the required lists of assets and liabilities to commence a bankruptcy case, collectively called the schedules. A claim secured by a lien in the debtor's property by reason of the debtor's agreement or an involuntary lien such as a judgment or tax lien. The creditor's claim may be divided into a secured claim, to the extent of the value of the collateral, and an unsecured claim equal to the remainder of the total debt. Generally a secured claim must be perfected under applicable state law to be treated as a secured claim in the bankruptcy.
Most consumer debts are unsecured.
Further definitions are found in Section 101 of the Bankruptcy Code. Click Here to receive your FREE evaluation copy of our practice management software. Search and view the index and TOC's of over 6,000 legal titles. Global Streaming Financial News and Business Information.