E.

Equity. The value of a debtor's interest in property that remains after liens and other creditors' interests are considered.

Executory Contract. A contract in which some or all of the obligations of each party have not been completed, e.g., an unexpired lease.. Debtors may assume or reject executory contracts.

Exempt Property . Property or value in property that the Bankruptcy Code or applicable state law permits a debtor to keep from creditors.

F.

Foreclosure. The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

Fraudulent Conveyance . The transfer of property for less than reasonably equivalent value. The bankruptcy court can set aside a fraudulent conveyance.

Fresh Start. The characterization of a debtor's status after bankruptcy, i.e. , free of most debts.

H.

Homestead . A homestead is your land (with or without a dwelling) and the adjoining land where the head of a family dwells. It is your fixed residence with the land and buildings surrounding the main house. In other words, if you own a house and/or land, and it is your primary place of residence, this land/house can be claimed as your homestead. A rural homestead may consist of 100 acres for a single person and 200 acres for a family. A temporary renting of a homestead to someone else is permissible as long as you intend to move back into the house.

L.

Lien. A legal claim by one party against the property of another as security for a debt. Must be paid off when property is sold. A mortgage or a first trust deed is a lien.

Liquidation. A sale of a debtor's property with the proceeds to be used for the benefit of creditors.

M.

Mailing Matrix . A mailing list of creditors of the debtor.

Meeting of Creditors (MOC). A meeting of creditors at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs.

Motion to Lift Automatic Stay . A request made by a creditor to the court seeking permission of the court to take an action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay.

N.

Nondischargeable Debt . Debt that can not be eliminated in bankruptcy. E.g., certain taxes.

No-Asset Case . A Chapter 7 case where there are no assets available to satisfy any portion of unsecured claims.

O.

Objection to Discharge . A trustee's or creditor's objection to the debtor's being released from personal liability for certain dischargeable debts.

Objection to Exemptions . A trustee's or creditor's objection to debtor's attempt to claim certain property as exempt from the reach of creditors.

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