Most dischargeable debts are unsecured, for example, credit card and medical debts . Dismissed - an order of judgment throwing a suit, action, motion, etc. out of the court. Garnishment - an action by a creditor to legally impound or seize funds from a debtor s source of income for the repayment of debts. Joint Case - a case in which both spouses have filed for bankruptcy. Liabilities - debtors obligations, debts, of direct responsibilities on a creditor s claim, potential or otherwise.
Reaffirmation agreements have the same legal effect of renewing a contract.
Redemption Agreement - an agreement between the bankrupt debtor and a secured creditor allowing the debtor to finish paying off the debt in one lump sum, usually for the current fair market value. The statements and worksheets attached to a voluntary petition for relief through bankruptcy that outlines a debtor s financial affairs, including assets, debts, exemptions, occupation, monthly income and expenditures, and other matters. Security Agreement - A contract to secure payment of a debt, for example, a car loan. Oftentimes, there are other stipulations included in security agreements, such as agreeing to maintain full coverage insurance on an automobile until the note is paid in full. A claims in which the creditor has an interest in the property of the debtor, or the bankruptcy estate, to secure payment of the debt.