Bankruptcy

Bankruptcy terms

1. 341 meeting The meeting of creditors required by section 341 of the Bankruptcy Code at which the debtor is questioned under oath by creditors, a trustee, examiner, or…
2. abandonment Process by which the debtors estate would not benefit by the sale of certain property so the trustee will turn it back over to the debtor.
3. abandonment of property Trustees declaration that the trustee has no interest in certain property because of lack of value, debtors exemption, or because it is burdensome to the…
4. absolute priority rule Requirement that a certain class of creditors be satisfied before payment to another class of creditors.
5. acceleration clause A clause that allows a lender to declare the entire outstanding balance of a loan immediately due and payable should a borrower violate specific loan…
6. adequate protection The standard of protection of the interest of a creditor which must be provided by the trustee or debtor in possession before the creditors interest can…
7. administrative claim Claims for reasonable and necessary expenses and fees incurred in the administration of an estate.
8. adversary proceeding A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court.
9. Affidavit A sworn statement in writing before a proper official, such as a notary public.
10. affiliate (1) Entity with voting power that directly or indirectly owns 20% of debtors voting securities; (2) Corporation in which the debtor owns 20% of voting…
11. Affirmation A declaration, oath or promise made by a person.
12. Agent Agent means any individual, other than a broker-dealer, who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales…
13. amortize To satisfy a debt in installments or recovery of an investment over a period of time.
14. Answer The defendant may file a written answer, notifying both the Court and the plaintiff exactly what the defendant’s response is to the facts in the…
15. Appeal To call for a review of an IRS decision or proposed adjustment.
16. Appellant Party who files the appeal.
17. Appellee Party to whom the appeal is filed against.
18. Assets What a firm or individual owns.
19. assume An agreement to continue performing duties under a contract or lease.
20. automatic stay An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy…
21. automatic stay provision Goes into effect the minute a bankruptcy case is filed; stops most creditors from suing or foreclosing against a debtor without prior permission of the…
22. avoidance powers The powers used by a trustee to undo transfers of the debtors property.
23. Balance Sheet A financial statement showing the nature and amount of a company's assets, liabilities and shareholders' equity.
24. Ballot Either in paper form or electronic, the mechanism for voters to show their vote preferences.
25. Bankruptcy The legal proceedings by which the affairs of a bankrupt person are turned over to a trustee or receiver for administration under the bankruptcy laws.
26. bankruptcy administrator An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the U.S.
27. bankruptcy administrators Handle administrative matters in bankruptcy cases in Alabama and North Carolina; appointed by the U.S. Court of Appeals; take the place of U.S. trustees.
28. Bankruptcy appellate panels (BAPS) In the circuits that have them, BAPs share the appellate role of the district court in bankruptcy filings; composed of three bankruptcy judges.
29. Bankruptcy Code The informal name for title 11 of the United States Code (11 U.S.C. §§ 101-1330), the federal bankruptcy law.
30. bankruptcy court The bankruptcy judges in regular active service in each district; a unit of the district court.
31. bankruptcy estate All legal or equitable interests of the debtor in property at the time of the bankruptcy filing.
32. Bankruptcy Judge A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases.
33. bankruptcy petition The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case.
34. bankruptcy reform act of 1978; bankruptcy amendments and judgeship act of 1984 Two federal laws that set out the organization and jurisdiction of the bankruptcy system.
35. bar date Date set by the court for filing objections to pleadings.
36. bench trial Trial without a jury in which a judge decides the facts.
37. Brief A written statement submitted by the lawyer for each side in a case that explains to the judges why they should decide the case or a particular part of a…
38. case administrator system A method of organizing work in the clerks office; one deputy clerk or a team of employees handles all the steps in a single case from start to finish.
39. case law The law as laid down in cases that have been decided in the decisions of the courts.
40. Change of venue Moving the case from the jurisdiction of one bankruptcy court to another.
41. chapter 11 The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership.
42. chapter 12 The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the…
43. chapter 13 The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income.
44. chapter 15 The chapter of the Bankruptcy Code dealing with cases of cross-border insolvency.
45. chapter 7 The chapter of the Bankruptcy Code providing for "liquidation,"(
46. chapter 9 The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing…
47. chief judge The judge who has primary responsibility for the administration of a court but also decides cases; chief judges are determined by seniority.
48. Claim Your request for the insurance company to pay you an amount under the terms of your policy.
49. claims bar date Last day to file proof of claim, usually 90 days after the section 341(a) meeting of creditors.
50. clerk of court An officer appointed by the court to work with the chief judge in overseeing the courts administration, especially to assist in managing the flow of cases…
51. Complaint A written communication primarily expressing a grievance against an insurance company or agent.
52. confirmation This written notice provided by a brokerage acknowledges completion of a securities transaction.
53. consumer debt Debt incurred by an individual primarily for a personal, family or household purpose.
54. consumer debtor A debtor whose debts are primarily consumer debts.
55. consumer debts Debts incurred for personal, as opposed to business, needs.
56. contested matter Those matters, other than objections to claims, that are disputed but are not within the definition of adversary proceeding contained in Rule 7001.
57. contingent claim A claim that may be owed by the debtor under certain circumstances,
58. Contract In most cases, the term "contract" refers to an insurance policy. A policy is considered to be a contract between the insurance company and the…
59. Conversion The ability, in some states, to switch your job-based coverage to an individual policy when you lose eligibility for job-based coverage.
60. core proceedings Core proceedings are directly related to the bankruptcy case that arises under the Bankruptcy Code.
61. counsel Legal advice; a term used to refer to lawyers in a case.
62. court Government entity authorized to resolve legal disputes. Judges sometimes use "court" to refer to themselves in the third person, as in "the court has read…
63. court reporter The person who takes down each and every word said in court "on the record" and, when necessary, produces a transcript of what happened at the hearing.
64. Credit Counseling Education on how to improve bad credit and how to avoid having more debt than can be repaid.
65. Creditor A person or company who provides credit to another person or company functions as a creditor.
66. creditors committee In a Chapter 11 case, a group of 7 to 10 unsecured creditors (excluding insiders) are appointed to a committee to keep apprised of the bankruptcy case and…
67. creditors' meeting see 341 meeting
68. current monthly income The average monthly income received by the debtor over the six calendar months before commencement of the bankruptcy case, including regular contributions…
69. Debt An obligation to repay a sum of principal, plus interest. In corporate terms, debt often refers to bonds or similar securities.
70. Debtor Someone who owes monies to another party.
71. debtor education see credit counseling
72. debtor-in-possession The management of a business in a Chapter 11 reorganization that continues to operate and control the debtor after the petition is filed, unless the court…
73. default judgment A judgment rendered because of the defendants failure to answer or appear.
74. Defendant An individual (or business) against whom a lawsuit is filed.
75. Deposition An oral statement made before an officer authorized by law to administer oaths.
76. Discharge (DIS-charj) In medicine, a fluid that comes out of the body. Discharge can be normal or a sign of disease.
77. dischargeable debt A debt for which the Bankruptcy Code allows the debtor's personal liability to be eliminated.
78. 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…
79. Discovery This is when the Court orders each party (each side) to give each other information about the facts before the trial, to avoid surprise.
80. Dismissal Process by which a court will terminate a case. With Prejudice - cannot refile. Without Prejudice - can refile at a later date.
81. Distribution The sale of securities. Also refers to a sum payable to shareholders representing their share of profits.
82. Dividend See Dividends
83. docket A log containing brief entries of court proceedings.
84. en banc "In the bench" or "full bench." Refers to court sessions with the entire membership of a court participating rather than the usual quorum. U.S.
85. Equity Another word for "stock." It represents an ownership interest by shareholders in a corporation.
86. Evidence (EV-uh-dins): Information that is collected in an orderly way about a disease or its treatment. This information often comes from research.
87. Ex Parte An action (a conversation orally or in writing, a ruling, or a hearing) done without all parties being notified in advance or without their presence.
88. exclusivity period The time during which only the debtor in a Chapter 11 reorganization can propose a plan or reorganization; generally at least the first 120 days after…
89. executory contract or lease Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed.
90. Exempt property Property of a debtor that the law protects from the action of creditors.
91. Exemption An exemption is a fixed dollar amount that you can subtract from your adjusted gross income to reduce your taxable income.
92. exemptions, exempt property Certain property owned by an individual debtor that the Bankruptcy Code or applicable state law permits the debtor to keep from unsecured creditors.
93. family farmer Individual and family engaged in farming operation.
94. family farmer or family fisherman An individual, individual and spouse, corporation, or partnership engaged in a farming or fishing operation that meets certain debt limits and other…
95. federal rules of bankruptcy procedure Govern practice and proceedings in the bankruptcy courts.
96. federalism The theory under which the powers of government are divided between the states and the central government.
97. final decree Order of the court that the case has been fully administered and is closed.
98. 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's value.
99. fresh start The characterization of a debtor's status after bankruptcy,
100. Garnishment Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds…