When filing bankruptcy, you will hear many terms thrown around and since BK Answers and Sagaria Law promote the concept of "Knowledge is Power," because, well, it is and we have plenty of it - we hope that consumers, counterparts and clients alike prefer to familiarize themselves with the language of bankruptcy. Let's start with the basics. Here are terms beginning with the letter "L":

Liquidation is one of two main types of bankruptcy (the other term being Reorganization). An individual’s or business’s assets are liquidated and sold to pay off as many debts as possible. Those debts that remain unpaid generally are discharged, and the filer no longer is responsible for their repayment.

Liquidation Value pertains to the estimated value of all assets that may be sold after having been liquidated through bankruptcy.

Liability is an obligation and/or debt owed.

Lien A legal claim that attaches to one’s property as security for repayment of a debt. It can make property transfer very difficult.

Please peruse the Fremont Bankruptcy Topics Library for other "Language of Bankruptcy" letters!