Repossession
Once in default, as defined by the creditor in the security agreement, occurs, the creditor can: repossess the
collateral by self-help (depending on state law) or with the aid of a court order, dispose of the collateral by public or
private foreclosure sale, retain the collateral in satisfaction of the debt, terminate the debtor's right of redemption, add
the costs of repossession and foreclosure to the unpaid balance of the debt, and pursue the debtor for any remaining
unpaid balance or deficiency.
Schedules
The debtor must file the required lists of assets and liabilities to commence a bankruptcy case, collectively called the
schedules.
Secured Debt
A secured debt is one where the creditor takes personal or real property as collateral. A creditor whose debt is
secured has a right to take property to satisfy a debt in default. For example, most homes are burdened by a secured
debt in the form of a mortgage. This means that the lender has the right to take the home if the borrower fails to make
payments on the loan.
Trustee
A private individual or corporation appointed in bankruptcy filings who represents the interests of the creditors in the
bankruptcy estate.