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last update
01/25/2008 |
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A B C D
E F J L
M N O P
R S T U
V
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Abandonment
- refers to the trustee, subject to court approval, releasing the
estate's interest in certain property. Abandonment automatically occurs
when the case is closed if scheduled property was not administered.
Adversary Proceeding - a lawsuit arising in or related
to a bankruptcy case that is commenced by filing a complaint with
the bankruptcy court.
Automatic Stay - an injunction that automatically stops lawsuits,
foreclosure, garnishments, and all collection activity against the
debtor the moment a bankruptcy petition is filed.
Bankruptcy - a legal procedure for
dealing with debt problems of individuals and businesses; specifically,
a case filed under one of the chapters of title 11 of the United States
Code (the Bankruptcy Code).
Bankruptcy Code - the informal name for title 11
of the United States Code (11 U.S.C. § 101-1330), the federal
bankruptcy law.
Bankruptcy Estate - all legal or equitable interests
of the debtor in property at the time of the bankruptcy filing. (The
estate includes all property in which the debtor has an interest,
even if it is owned or held by another person.)
Bankruptcy Trustee - a private individual or corporation
appointed in all chapter 7, chapter 12, and chapter 13 cases to represent
the interests of the bankruptcy estate and the debtor's creditors.
Business Bankruptcy - a bankruptcy case in which
the debtor is a business or an individual involved in business and
the debts are for business purposes.
Chapter 7 - the chapter of the Bankruptcy
Code providing for 'liquidation', i.e. the sale of a debtor's nonexempt
property and the distribution of the proceeds to creditors. Chapter 7 Information.
Chapter 7 Trustee - a person appointed in a chapter
7 case to represent the interests of the bankruptcy estate and the
unsecured creditors. (The trustee's responsibilities include reviewing
the debtor's petition and schedules, liquidating the property of the
estate, and making distributions to creditors. The trustee may also
bring actions against creditors or the debtor to recover property
of the bankruptcy estate.)
Chapter 11 - a reorganization bankruptcy, usually
involving a corporation or partnership. (A chapter 11 debtor usually
proposes a plan of reorganization to keep its business alive and pay
creditors over time. People in business or individuals can also seek
relief in chapter 11.)
Chapter 12 - the chapter of the Bankruptcy Code providing
for adjustment of debts of a 'family farmer or fisherman,' as that term is defined
in the Bankruptcy Code.
Chapter 13 - the chapter of the Bankruptcy Code providing
for adjustment of debts of an individual with regular income. (Chapter
13 allows a debtor to keep property and pay debts over time, usually
three to five years.) Chapter 13 Information.
Chapter 13 Trustee - a person appointed to administer
a chapter 13 case. (A chapter 13 trustee's responsibilities are similar
to those of a chapter 7 trustee; however, a chapter 13 trustee has
the additional responsibilities of overseeing the debtor's plan, receiving
payments from the debtors, and disbursing plan payments to creditors.)
Claim - a creditor's assertion of a right to payment
from a debtor or the debtor's property.
Complaint - the first or initiatory document in a
lawsuit (adversary proceeding) that notifies the court and the defendant
of the grounds claimed by the plaintiff for an award of money or other
relief against the defendant.
Confirmation - approval of a plan of reorganization
by a bankruptcy judge.
Consumer Bankruptcy - a bankruptcy case filed to
reduce or eliminate debts that are primarily consumer debts.
Consumer Debts - debts incurred for personal, as
opposed to business, needs.
Contingent Claim - a claim that may be owed by the
debtor under certain circumstances, for example, where the debtor
is a cosigner on another person's loan and that person fails to pay.
Creditor - a person to whom or business to which
the debtor owes money or that claims to be owed money by the debtor.
Creditor (341) Meeting - a meeting of creditors at
which time the debtor is questioned under oath by creditors, a trustee,
examiner, or the United States Trustee about his/her financial affairs.
Debtor - a person who has filed a
petition for relief under the bankruptcy laws.
Defendant - an individual (or business) against whom
a lawsuit (adversary proceeding) is filed.
Discharge - a release of a debtor from personal liability
for certain dischargeable debts. (A discharge releases a debtor from
personal liability for certain debts known as dischargeable debts
(defined below) and prevents the creditors owed those debts from taking
any action against the debtor or the debtor's property to collect
the debts. The discharge also prohibits creditors from communicating
with the debtor regarding the debt, including telephone calls, letters,
and personal contact.)
Dischargeable Debt - a debt for which the Bankruptcy
Code allows the debtor's personal liability to be eliminated.
Disclosure Statement - a written document prepared
by the chapter 11 debtor or other plan proponent that is designed
to provide 'adequate information' to creditors to enable them to evaluate
the chapter 11 plan of reorganization.
Equity - the value of a debtor's
interest in property that remains after liens and other creditors'
interests are considered. (Example: if a house valued at $60,000 is
subject to a $30,000 mortgage, there is $30,000 of equity.)
Executory Contract or Lease - generally includes
contracts or leases under which both parties to the agreement have
duties remaining to be performed. (If a contract or lease is executory,
a debtor may assume it or reject it.)
Exempt - a description of any property that a debtor
may prevent creditors from recovering.
Exemption - property that the Bankruptcy Code or applicable
state law permits a debtor to keep from creditors.
Family Farmer - an individual, individual
and spouse, corporation, or partnership engaged in a farming operation
who meet certain debt limits and other statutory criteria for filing
a petition under chapter 12.
Fraudulent Transfer - a transfer of a debtor's property
made with intent to defraud or for which the debtor receives less
than the transferred property value.
Fresh Start - the characterization of a debtor's
status after bankruptcy, i.e. free of most debts. (Giving debtors
a fresh start is one purpose of the Bankruptcy Code.)
Joint Administration - a court-approved
mechanism under which two or more cases can be administered together.
(Assuming no conflicts of interest, these separate firms or individuals
can pool their resources, hire the same professionals, etc.)
Joint Petition - one bankruptcy petition filed by
a husband and wife together.
Lien - a charge upon specific property
designed to secure payment of a debt or performance of an obligation.
Liquidation - a sale of a debtor's property with
the proceeds to be used for the benefit of creditors.
Liquidated Claim - a creditor's claim for a fixed
amount of money.
Motion to Lift the Automatic Stay
- a formal pleading filed with the Bankruptcy Court by a
creditor asking to allow the creditor to take an action against a
debtor or the debtor's property that would otherwise be prohibited
by the automatic stay imposed by the filing of the bankruptcy.
No-Asset Case - a chapter 7 case
where there are no assets available to satisfy any portion of the
creditors' unsecured claims.
Non-Dischargeable Debt - a debt that cannot be eliminated
in bankruptcy.
Objection to Discharge - a trustee's
or creditor's objection to the debtor's being released from personal
liability for certain dischargeable debts.
Objection to Exemptions - a trustee's or creditor's
objection to a debtor's attempt to claim certain property as exempt,
i.e., not liable for any prepetition debt of the debtor.
Party-In-Interest - a party who is
actually and substantially interested in the subject matter, as distinguished
from one who has only a nominal or technical interest in it.
Plan - a debtor's detailed description of how the
debtor proposes to pay creditors' claims over a fixed period of time.
Plaintiff - a person or business that files a formal
complaint (known as an adversary proceeding) with the court.
Post-Petition Transfer - a transfer of a debtor's property
made after the commencement of the case.
Pre-Bankruptcy Planning - the arrangement (or rearrangement)
of a debtor's property to allow the debtor to take maximum advantage
of exemptions. (Prebankruptcy planning typically includes converting
non-exempt assets into exempt assets.)
Preferential Debt Payment - a debt payment made to
a creditor in the 90-day period before a debtor files bankruptcy (or
within one year if the creditor was an insider) that gives the creditor
more than the creditor would receive in the debtor's chapter 7 case.
Priority - the Bankruptcy Code's statutory ranking
of unsecured claims that determines the order in which unsecured claims
will be paid if there is not enough money to pay all unsecured claims
in full.
Priority Claim - an unsecured claim that is entitled
to be paid ahead of other unsecured claims that are not entitled to
priority status. Priority refers to the order in which these unsecured
claims are to be paid.
Proof of Claim - a written statement describing the
reason a debtor owes a creditor money. Usually filed by the creditor
to whom the money is owed. Proof of Claim Form.
Property of the Estate - all legal or equitable interests
of the debtor in property as of the commencement of the case.
Reaffirmation Agreement - an agreement
by a chapter 7 debtor to continue paying a dischargeable debt after
the bankruptcy, usually for the purpose of keeping collateral or mortgaged
property that would otherwise be subject to repossession. Reaffirmation Form.
Secured Creditor - an individual
or business holding a claim against the debtor that is secured by
a lien on property of the estate or that is subject to a right of
setoff.
Secured Debt - debt backed by a mortgage, pledge
of collateral, or other lien; debt for which the creditor has the
right to pursue specific pledged property upon default.
Schedules - lists submitted by the debtor along with
the petition (or shortly thereafter) showing the debtor's assets,
liabilities, and other financial information. (There are official
forms a debtor must use.)
Statement of Financial Affairs - a series of questions the
debtor must answer in writing concerning sources of income, transfers
of property, lawsuits by creditors, etc. (There is an official form
a debtor must use.)
Statement of Intention - a declaration made by a
chapter 7 debtor concerning plans for dealing with consumer debts
that are secured by property of the estate.
Substantial Abuse - the characterization of a bankruptcy
case filed by an individual whose debts are primarily consumer debts
where the court finds that the granting of relief would be an abuse
of chapter 7 because, for example, the debtor can pay its debts.
Substantive Consolidation - putting the assets and
liabilities of two or more related debtors into a single pool to pay
creditors. (Courts are reluctant to allow substantive consolidation
since the action must not only justify the benefit that one set of
creditors receives, but also the harm that other creditors suffer
as a result.)
Transfer - any mode or means by which
a debtor disposes of or parts with his/her property.
Trustee - the representative of the bankruptcy estate
who exercises statutory powers, principally for the benefit of the
unsecured creditors, under the general supervision of the court and
the direct supervision of the United States Trustee or Bankruptcy
Administrator.
United States Trustee - an officer
of the Justice Department responsible for supervising the
administration of bankruptcy cases, estates, and trustees, monitoring
plans and disclosure
statements, monitoring creditors' committees, monitoring fee applications,
and performing
other statutory duties.
Undersecured Debt - a debt secured by property that
is worth less than the amount of the debt.
Unlawful Detainer Action - a lawsuit brought by a
landlord against a tenant to evict the tenant from rental property-usually
for non-payment of rent.
Unliquidated Claim - a claim for which a specific
value has not been determined.
Unscheduled Debt - a debt that should have been listed
by a debtor in the schedules filed with the court but was not. (Depending
on the circumstances, an unscheduled debt may or may not be discharged.)
Unsecured Claim - a claim or debt for which a creditor holds
no special assurance of payment, such as a mortgage or lien; a debt
for which credit was extended based solely upon the creditor's assessment
of the debtor's future ability to pay.
Voluntary Transfer - a transfer of
a debtor's property with the debtor's consent.
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