While the information presented herein is accurate as of the date of publication, it should not be cited or relied upon as legal authority.  This information should not be used as a substitute for reference to the United States Bankruptcy Code

Bankruptcy Terminology

Most debtors who file bankruptcy, and many of their creditors, know very little about the bankruptcy process. The Public Information Series of the Bankruptcy Judges Division is designed to provide debtors, creditors, judiciary employees, and the general public with a basic explanation of bankruptcy and how it works. The series features eight pamphlets that discuss chapter 7

Bankruptcy Terminology

adversary proceeding

A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint

Bankruptcy Terminology

complaint: The first or initiatory document in a lawsuit 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. with the court.

assume

An agreement to continue performing duties under a contract or lease.

automatic stay

An injunction that automatically stops lawsuits, foreclosure, garnishments, and all collection activity against the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. the moment a bankruptcy petition

Bankruptcy Terminology

bankruptcy petition: A formal request for the protection of the federal bankruptcy laws. (There is an official form for bankruptcy petitions.) 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 Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. ).

Bankruptcy Administrator

An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the United States trustee

Bankruptcy Terminology

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. , is 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.

Bankruptcy Code

The informal name for title 11 of the United States Code (11 U.S.C. §§ 101 - 1330), the federal bankruptcy law.

bankruptcy court

The bankruptcy judges in regular active service in each district; a unit of the district court.

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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. has an interest, even if it is owned or held by another person.)

bankruptcy judge

A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases.

bankruptcy mill

A business not authorized to practice law that provides bankruptcy counseling and prepares bankruptcy petitions.

bankruptcy petition

A formal request for the protection of the federal bankruptcy laws. (There is an official form for bankruptcy petitions.)

bankruptcy trustee

Bankruptcy Terminology

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.

A private individual or corporation appointed in all chapter 7

Bankruptcy Terminology

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 12

Bankruptcy Terminology

chapter 12: The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," as that term is defined in the Code. , and chapter 13

Bankruptcy Terminology

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.) cases to represent the interests of the bankruptcy estate

Bankruptcy Terminology

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.) and the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's creditors.

business bankruptcy

A bankruptcy case in which the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. is a business or an individual involved in business and the debts are for business purposes.

chapter 7

The chapter of the Bankruptcy Code

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. providing for "liquidation

Bankruptcy Terminology

liquidation: A sale of a debtor's property with the proceeds to be used for the benefit of creditors. ," i.e., the sale of a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's nonexempt property and the distribution of the proceeds to creditors.

chapter 7 trustee

Bankruptcy Terminology

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.

A person appointed in a chapter 7

Bankruptcy Terminology

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. case to represent the interests of the bankruptcy estate

Bankruptcy Terminology

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.) and the unsecured creditors. (The trustee's responsibilities include reviewing the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's petition and schedules, liquidating the property of the estate

Bankruptcy Terminology

property of the estate: All legal or equitable interests of the debtor in property as of the commencement of the case. , and making distributions to creditors. The trustee

Bankruptcy Terminology

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. may also bring actions against creditors or the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. to recover property of the bankruptcy estate

Bankruptcy Terminology

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.).)

chapter 11

A reorganization bankruptcy, usually involving a corporation or partnership. (A chapter 11

Bankruptcy Terminology

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.) debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 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

Bankruptcy Terminology

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

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. providing for adjustment of debts of a "family farmer

Bankruptcy Terminology

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.," as that term is defined in the Code.

chapter 13

The chapter of the Bankruptcy Code

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. providing for adjustment of debts of an individual with regular income. (Chapter 13

Bankruptcy Terminology

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.) allows a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. to keep property and pay debts over time, usually three to five years.)

chapter 13 trustee

Bankruptcy Terminology

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.

A person appointed to administer a chapter 13

Bankruptcy Terminology

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.) case. (A chapter 13 trustee

Bankruptcy Terminology

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 debtors, and disbursing plan payments to creditors.)'s responsibilities are similar to those of a chapter 7 trustee

Bankruptcy Terminology

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.) ; however, a chapter 13

Bankruptcy Terminology

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.) trustee

Bankruptcy Terminology

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. has the additional responsibilities of overseeing the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's plan, receiving payments from debtors, and disbursing plan payments to creditors.)

claim

A creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. 's assertion of a right to payment from a debtor or the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's property.

complaint

The first or initiatory document in a lawsuit that notifies the court and the defendant

Bankruptcy Terminology

defendant: An individual (or business) against whom a lawsuit is filed. of the grounds claimed by the plaintiff

Bankruptcy Terminology

plaintiff: A person or business that files a formal complaint with the court. for an award of money or other relief against the defendant

Bankruptcy Terminology

defendant: An individual (or business) against whom a lawsuit is filed. .

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

Bankruptcy Terminology

consumer debts: Debts incurred for personal, as opposed to business, needs. .

consumer debts

Debts incurred for personal, as opposed to business, needs.

contingent claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

A claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property. that may be owed by the debtor under certain circumstances, for example, where the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. .

debtor

A person who has filed a petition for relief under the bankruptcy laws.

defendant

An individual (or business) against whom a lawsuit 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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's property to collect the debts. The discharge

Bankruptcy Terminology

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.) also prohibits creditors from communicating with the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. regarding the debt, including telephone calls, letters, and personal contact.)

dischargeable debt

A debt for which the Bankruptcy Code

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. allows the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's personal liability to be eliminated.

disclosure statement

A written document prepared by the chapter 11

Bankruptcy Terminology

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.) debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. or other plan proponent that is designed to provide "adequate information" to creditors to enable them to evaluate the chapter 11

Bankruptcy Terminology

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.) plan of reorganization.

equity

The value of a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. '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

Bankruptcy Terminology

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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. may assume it or reject it.)

exempt

A description of any property that a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. may prevent creditors from recovering.

exemption

Property that the Bankruptcy Code

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. or applicable state law permits a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. to keep from creditors.

exempt property

Property or value in property that a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. is allowed to retain, free from the claims of creditors who do not have liens.

face sheet filing

A bankruptcy case filed either without schedules or with incomplete schedules listing few creditors and debts. (Face sheet filings are often made for the purpose of delaying an eviction or foreclosure.)

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

Bankruptcy Terminology

chapter 12: The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," as that term is defined in the Code. .

fraudulent transfer

A transfer of a debtor's property made with intent to defraud or for which the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. receives less than the transferred property's value.

fresh start

The characterization of a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start

Bankruptcy Terminology

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.) is one purpose of the Bankruptcy Code

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. .)

insider (of individual debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. )

Any relative of the debtor or of a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or corporation of which the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. is a director, officer, or person in control.

insider (of corporate debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. )

A director, officer, or person in control of the debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a relative of a general partner, director, officer, or person in control of the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. .

joint administration

A court-approved mechanism under which two or more cases can be administered together. (Assuming no conflicts of interest, these separate businesses or individuals can pool their resources, hire the same professionals, etc.)

joint petition

One bankruptcy petition

Bankruptcy Terminology

bankruptcy petition: A formal request for the protection of the federal bankruptcy laws. (There is an official form for bankruptcy petitions.) 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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's property with the proceeds to be used for the benefit of creditors.

liquidated claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

A creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. 's claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property. for a fixed amount of money.

motion to lift the automatic stay

Bankruptcy Terminology

automatic stay: An injunction that automatically stops lawsuits, foreclosure, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

A request by a creditor to allow the creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. to take an action against a debtor or the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's property that would otherwise be prohibited by the automatic stay

Bankruptcy Terminology

automatic stay: An injunction that automatically stops lawsuits, foreclosure, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed..

no-asset case

A chapter 7

Bankruptcy Terminology

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. case where there are no assets available to satisfy any portion of the creditors' unsecured claims.

nondischargeable debt

A debt that cannot be eliminated in bankruptcy.

objection to discharge

Bankruptcy Terminology

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.)

A trustee

Bankruptcy Terminology

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. 's or creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. 's objection to the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's being released from personal liability for certain dischargeable debts.

objection to exemptions

A trustee

Bankruptcy Terminology

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. 's or creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. 's objection to a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's attempt to claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property. certain property as exempt, i.e., not liable for any prepetition debt of the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. .

party in interest

A party who is actually and substantially interested in the subject matter, as distinguished from one who has only a nominal on technical interest in it.

plan

A debtor's detailed description of how the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. proposes to pay creditors' claims over a fixed period of time.

plaintiff

A person or business that files a formal complaint

Bankruptcy Terminology

complaint: The first or initiatory document in a lawsuit 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. with the court.

postpetition transfer

A transfer of a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's property made after the commencement of the case.

prebankruptcy planning

The arrangement (or rearrangement) of a debtor's property to allow the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. to take maximum advantage of exemptions. (Prebankruptcy planning

Bankruptcy Terminology

prebankruptcy 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 nonexempt assets into exempt assets.) typically includes converting nonexempt 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

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. would receive in the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's chapter 7

Bankruptcy Terminology

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. case.

priority

The Bankruptcy Code

Bankruptcy Terminology

Bankruptcy Code: The informal name for title 11 of the United States Code (11 U.S.C. 101 - 1330), the federal bankruptcy law. '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

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

An unsecured claim

Bankruptcy Terminology

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. 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

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

A written statement, filed by a creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. , describing the reason a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. owes the creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. money. (There is an official form for this purpose.)

property of the estate

All legal or equitable interests of the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. in property as of the commencement of the case.

reaffirmation agreement

An agreement by a chapter 7

Bankruptcy Terminology

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. debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. to continue paying a dischargeable debt

Bankruptcy Terminology

dischargeable debt: A debt for which the Bankruptcy Code allows the debtor's personal liability to be eliminated. after the bankruptcy, usually for the purpose of keeping collateral or mortgaged property that would otherwise be subject to repossession.

secured creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor.

An individual or business holding a claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property. against the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. that is secured by a lien

Bankruptcy Terminology

lien: A charge upon specific property designed to secure payment of a debt or performance of an obligation. on property of the estate

Bankruptcy Terminology

property of the estate: All legal or equitable interests of the debtor in property as of the commencement of the case. or that is subject to a right of setoff.

secured debt

Debt backed by a mortgage, pledge of collateral, or other lien

Bankruptcy Terminology

lien: A charge upon specific property designed to secure payment of a debt or performance of an obligation. ; debt for which the creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. 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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 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

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. must use.)

statement of intention

A declaration made by a chapter 7

Bankruptcy Terminology

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. debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. concerning plans for dealing with consumer debts

Bankruptcy Terminology

consumer debts: Debts incurred for personal, as opposed to business, needs. that are secured by property of the estate

Bankruptcy Terminology

property of the estate: All legal or equitable interests of the debtor in property as of the commencement of the case. .

substantial abuse

The characterization of a bankruptcy case filed by an individual whose debts are primarily consumer debts

Bankruptcy Terminology

consumer debts: Debts incurred for personal, as opposed to business, needs. where the court finds that the granting of relief would be an abuse of chapter 7

Bankruptcy Terminology

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. because, for example, the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 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

Bankruptcy Terminology

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.) 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.)

341 meeting

A meeting of creditors at which the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. is questioned under oath by creditors, a trustee

Bankruptcy Terminology

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. , examiner, or the United States trustee

Bankruptcy Terminology

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. about his/her financial affairs.

transfer

Any mode or means by which a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. disposes of or parts with his/her property.

trustee

The representative of the bankruptcy estate

Bankruptcy Terminology

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.) 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

Bankruptcy Terminology

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. or Bankruptcy Administrator

Bankruptcy Terminology

Bankruptcy Administrator: An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the United States trustee, is 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..

typing service

A business not authorized to practice law that prepares bankruptcy petitions.

United States trustee

Bankruptcy Terminology

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.

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 claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

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 nonpayment of rent.

unliquidated claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

A claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property. for which a specific value has not been determined.

unscheduled debt

A debt that should have been listed by a debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. in the schedules filed with the court but was not. (Depending on the circumstances, an unscheduled debt

Bankruptcy Terminology

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.) may or may not be discharged.)

unsecured claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property.

A claim

Bankruptcy Terminology

claim: A creditor's assertion of a right to payment from a debtor or the debtor's property. or debt for which a creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. holds no special assurance of payment, such as a mortgage or lien

Bankruptcy Terminology

lien: A charge upon specific property designed to secure payment of a debt or performance of an obligation. ; a debt for which credit was extended based solely upon the creditor

Bankruptcy Terminology

creditor: A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor. 's assessment of the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's future ability to pay.

voluntary transfer

A transfer of a debtor's property with the debtor

Bankruptcy Terminology

debtor: A person who has filed a petition for relief under the bankruptcy laws. 's consent.