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.” 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 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.) 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 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. 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’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.) EXEMPTION
- Property
that the Bankruptcy Code or applicable state law permits a debtor to keep
from creditors. EXEMPT PROPERTY - Property or value in
property that a debtor is allowed to retain, free from the claims of
creditors who do not have liens. 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. FRESH START - The characterization
of a debtor’s status after bankruptcy, i.e., free of most
debts. (One purpose of the Bankruptcy Code.) INSIDER (of individual
debtor) - 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 is a director,
officer, or person in control. 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 request by a
creditor 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. NO-ASSET CASE - A chapter 7 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 - A trustee’s or
creditor’s objection to the debtor’s being released from personal liability for
certain 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 pre-petition 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 on technical interest in it. PLAINTIFF - A person or business
that files a formal complaint with the court. POSTPETITION TRANSFER - A transfer of a
debtor’s property made after the commencement of the case. PREBANKRUPTCY PLANNING - The arrangement (or
rearrangement) of a debtor’s property to allow the debtor to take
maximum advantage of exemptions. (Pre-bankruptcy planning 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 would receive in the debtor’s chapter 7 case. 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. (There is an official form for this purpose.) PROPERTY OF THE ESTATE - All legal or equitable
interests of the debtor in property as of the commencement of the case. REDEMPTION AGREEMENT – To purchase secured
property at a stipulated price (generally fair market value) with a lump
sum payment. 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. 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. 341 MEETING - A meeting of creditors
at which the debtor is questioned under oath by creditors, a trustee,
examiner, or the 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. US 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 duties. UNDERSECURED CLAIM - A debt secured by
property that is worth less than the amount of the debt. UNLAWFUL DETAINER ACTION - An eviction lawsuit
brought by a landlord against a tenant—usually for nonpayment 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. --Taken from
“Bankruptcy Basics,” Administrative Office of the Statement
required by 11 U.S.C. Sec. 528(a)(4): This website is designed for
general information only. The information presented on this website should
not be construed to be formal legal advice nor the
formation of a lawyer/client relationship. © 2006 ADAMS LAW OFFICE, LLC.
All rights reserved.
We are a debt relief agency. We help people file for bankruptcy relief
under the Bankruptcy Code.
