Filing for bankruptcy can be a challenging and intricate process, with numerous procedures and terminology that may be unfamiliar to many people. That is why, in the below guide, we will dive into some of these terms to help you gain a better comprehension of their meanings and how they might relate to your specific situation.

bankruptcy file

An Automatic Stay

An automatic stay is an injunction that immediately stops lawsuits, garnishments, foreclosures, and all collection activity against a debtor when a bankruptcy petition is filed.

Chapter 7 Bankruptcy

A Chapter 7 Bankruptcy in Augusta is a liquidation bankruptcy that allows a person to wipe out most of their unsecured debt.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy allows individuals with a regular income to develop a plan to repay all or part of their debts. Under this type of bankruptcy, debtors will propose a repayment plan to make installment payments to creditors over three to five years.


discharge releases the debtor from personal liability regarding certain types of specified debts. Or, more simply put, the debtor is no longer legally required to pay the debts that have been discharged.


Garnishment refers to a court order that allows property to be taken from an individual to satisfy a debt. In comparison, wage garnishment refers to the court order for an employer to withhold a portion of pay to send to an entity or individual to whom a debt is owed to. These garnishments only remain in effect until the debt is paid.


A judgment means there is a legal determination that a person owes a balance to certain creditors. If the individual cannot pay off their debt, these creditors can use a judgment to try to collect property from them or garnish their wages to satisfy these debts.


A lien refers to a legal claim against property acquired on a debt. This legal claim gives a creditor the right to hold, take, or sell a debtor’s property as security or payment for their debt when the debtor cannot pay off their loan.

Non-Dischargeable Debts

This term refers to debts that cannot be eliminated even when a person files for bankruptcy. In Augusta, these debts include the following:

  • Child support or alimony
  • Court fines and criminal restitution
  • Most student loans
  • Debts incurred through fraud or deception
  • Most taxes
  • Personal injury debts caused by driving while under the influence of alcohol 

Secured Debt

A secured debt is a debt that the creditor has collateral on. Debts backed by a pledge of collateral, a mortgage, or another lien tend to be known as secured debts because they reduce the risk associated with lending. For instance, home mortgages and car loans are the most common type of secured debts.

Contact Duncan & Brow, Attorneys at Law, LLLP, for More Information

If you are considering filing for bankruptcy in Augusta or have questions about certain terms, do not wait any longer to get the necessary answers. Contact the law office of Duncan & Brow, Attorneys at Law, LLLP, today and speak with a member of our legal team.