If you’re living in the Mankato, MN area, it’s likely you’ve heard plenty of jokes about Minnesotan dialects and language. There are all sorts of local idioms around these parts, from “Duck, Duck, Gray Duck” to “hot dish,” each of which belong proudly situated within the culture of Minnesota.
When it comes to the culture surrounding bankruptcy, it’s no surprise that it has a language all its own. There are all sorts of words that sound unfamiliar, even in a basic definition of what “bankruptcy” means:
“A federally authorized procedure by which a debtor—an individual, corporation, or municipality— is relieved of total liability for its debts by making court-approved arrangements for their partial repayment.”
…What?!
Including a few words from that definition, Behm Law Group, Ltd. has a list of key terms that will help you translate the language of bankruptcy:
- Liabilities are monetary or legal obligations.
- Debts are monetary or legal obligations that are owed.
- Debtors can be people, partnerships, corporations, or municipalities. The debtor is the subject within a bankruptcy case, meaning they owe money or have legal obligations towards another person or organization.
- Creditors are people or organizations that debtors owe. Typically, they are owed either money or another legal entity.
- Assets are all forms of property held by the debtor.
- Liquidated debts are for a specific, numerical amount. While debtors are still responsible for non-liquidated debts, their exact monetary amount is not known.
With this list of terms in your dictionary, it should be just a little easier for you to decipher the complex vocabulary within a bankruptcy filing.
Whether you speak the language of bankruptcy fluently, or you’re still a little confused, the professionals at Behm Law Group, Ltd. can help. For a clear, simple translation of bankruptcy in the Mankato, Minnesota area, contact Behm Law Group, Ltd. today.
