Delinquency
Failure to make payments when payments are due. For most mortgages, payments are due on the first day of the
month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late
and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one
or more of the credit bureaus.
Priority Claims
Certain debts, such as unpaid wages, spousal or child support, and taxes are elevated in the payment hierarchy under
the Code. Priority claims must be paid in full before general unsecured claims are paid.
Proof of Claim
Document a creditor files showing how much money is owed to them by the debtor, together with all supporting
evidence of such claim. There is usually a deadline in which to file a Proof of Claim.
Property of the Estate
The property that is not exempt and belongs to the bankruptcy estate. Property of the estate is usually sold by the
trustee and the claims of creditors paid from the proceeds.
Reaffirm
The debtor can choose to reaffirm debts that would otherwise be discharged by the bankruptcy. Generally, when a
debt is reaffirmed, the parties to the reaffirmed debt have the same rights and liabilities that each had prior to the
bankruptcy filing: the debtor is obligated to pay and the creditor can sue or repossess if the debtor doesn't pay.
Relief from Stay
A creditor can ask the judge to lift the automatic stay and permit some action against the debtor or the property of the
estate. If the motion is granted, the moving party (but no one else) is free to take whatever action the court permits.
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.