Simplified Bankruptcy & Legal Glossary
Santillán Law P.C. has provided this bankruptcy and legal glossary to help people going through bankruptcy including Chapter 7, Chapter 11, Chapter 12 or Chapter 13 understand some of the terms that will be used during their case. Please note that all bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code. This glossary is not and should not be construed as legal advice it is provided for informational purposes only and does not constitute “Legal Advice” For proper legal advice please consult a qualified attorney.
For more information about Bankruptcy we recommend the following sites
US Federal Courts – US Federal Courts information about Bankruptcy
Pennsylvania Debt Relief – A website providing resources to help you avoid bankruptcy
PALawHelp.org – A group providing leagl information about many legal topics including bankruptcy in Pennsylvania
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- Absolute Prioritythe order of payment to the different classes of creditors mandated by the Bankruptcy Code. In theory, claims with higher priority are paid in full before other claims receive anything. Junior creditors and shareholders are paid after senior creditors. Specifically, the usual order is: first,(...) Read More
- Adequate protectionthe right of a party with an interest in the debtor’s property (such as a secured creditor) to assurance that its interest will not be diminished during the bankruptcy proceedings. Read More
- Administrative claim (or administrative expense claim)debt incurred by the debtor, with court approval, after the bankruptcy filing including necessary costs of preserving the estate, wages, salaries, court costs, lawyers’ fees, accountants’ fees, trustees’ expenses, etc. Read More
- Adversary proceedingA lawsuit filed in the bankruptcy court which is related to the debtor’s bankruptcy case. Examples are complaints to determine the dischargeability of a debt and complaints to determine the extent and validity of liens. Read More
- Allowed claim (or allowed interest)a claim of a creditor (or an equity interest) that is approved by the court for satisfaction under the plan of reorganization. Read More
- Arrangementmay refer to a variety of formal or informal agreements worked out concerning the conditions under which a bankrupt company may operate; often, it refers to an extension of time in which debt can be paid off. This was the term used under old Chapter XI. Read More
- Arrears The amount that is unpaid and overdue as of the date the bankruptcy case is filed. The word “arrears” is usually used when referring to back child support, back alimony owed, or the amount that is past due on mortgage payments (including interest and penalties). Read More
- Asset Personal possessions of value, including cash, real estate, vehicles and investments. Read More
- Automatic staythe suspension of actions, such as debt collection or foreclosure, against the company or consumer in bankruptcy. Occurs automatically when the bankruptcy petition is filed. This action protects the debtor from creditors seeking to seize its assets. It protects some creditors in that it(...) Read More
- AvoidanceThe Bankruptcy Code permits the debtor to eliminate (avoid) some kinds of liens that interfere with (or impair) an exemption claimed in the bankruptcy. Most judgment liens that have attached to the debtor’s home can be avoided if the total of the liens (mortgages, judgment liens and statutory(...) Read More
- Avoidance powerthe power of the court to invalidate certain obligations or transactions undertaken by a debtor prior to filing bankruptcy. It is generally intended to reverse transfers of property that favor one creditor over another. Read More
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- Ballot dateconcerning a bankruptcy reorganization, the date and time, set by the bankruptcy court, by which all votes for accepting or rejecting the plan of reorganization must be received. Read More
- Bankruptthe entity that files a bankruptcy; the debtor; the insolvent entity. This is a non-technical term and is not used in the Bankruptcy Code. Read More
- BankruptcyA non-technical term for a legal state of insolvency. (see also failure and insolvency) Read More
- Bankruptcy Act of 1898The basis of the federal bankruptcy statutes used until the Bankruptcy Reform Act of 1978; provided primarily for liquidation of companies; reorganization could be effected indirectly under the 1898 Act through equity receiverships (these were used to keep creditors from seizing the assets of(...) Read More
- Bankruptcy Act of 1933A statutory expansion of reorganization for companies; (see Section 77); the Bankruptcy Act of 1933 and the Bankruptcy Act of 1934 were superseded by the Chandler Act of 1938. Read More
- Bankruptcy Act of 1934A further statutory expansion of reorganization for companies; (see Section 77B); the Bankruptcy Act of 1933 and the Bankruptcy Act of 1934 were superseded by the Chandler Act of 1938. Read More
- Bankruptcy Amendments of 1984A set of amendments to the Bankruptcy Reform Act of 1978. It contains a number of provisions including: limiting the jurisdiction of the bankruptcy court, limiting the right of companies to invalidate labor contracts while in bankruptcy and providing for the prevention of “substantial abuse.” Read More
- Bankruptcy CodeThe name given to the statutory body of bankruptcy laws after the Bankruptcy Reform Act of 1978. or Title 11 of the United States Code governs bankruptcy proceedings. Bankruptcy is a matter of federal law and is, with the exception of exemptions, the same in every state. When federal(...) Read More
- Bankruptcy CourtThe federal tribunal where cases under the Bankruptcy Code are litigated. Read More
- Bankruptcy estateGenerally, the property of the debtor that is subject to the jurisdiction of the bankruptcy court. Read More
- Bankruptcy petitionThe document filed with the court to initiate a bankruptcy proceeding. Read More
- Bankruptcy Reform Act of 1978First substantive bankruptcy code revision since the Chandler Act of 1938; took effect on October 1, 1979; some of the major elements of this act were 1) upgrading the jurisdiction of the U.S. bankruptcy courts to deal with cases handled by other courts (subsequently modified); 2) allowing the(...) Read More
- Bankruptcy Reform Act of 1994Most comprehensive piece of bankruptcy legislation since the Bankruptcy Reform Act of 1978; signed into law on October 22, 1994 with most provisions effective immediately; included in the 1994 Act are: provisions to expedite bankruptcy proceedings; provisions to standardize fees; provisions to(...) Read More
- Bankruptcy Rule 2004A provision of the Bankruptcy Code that allows one party in a bankruptcy proceeding to compel discovery or other examination against another party. Read More
- Bankruptcy Tax Act of 1980The Bankruptcy Reform Act of 1978 did not specify how certain tax matters concerning bankruptcies should be handled. The Bankruptcy Tax Act of 1980 was passed to specify the tax treatment of bankruptcy tax issues. It specifies the tax treatment of, among other things, tax loss carry-forwards(...) Read More
- Bar dateThe last date that creditors may file a claim against the debtor. Read More
- Business bankruptcyA bankruptcy categorized by the U.S. courts as a business bankruptcy; data from the U.S. Administrative Office of the Courts subdivides bankruptcies into business and non-business. Read More
- Business failureAn economic assessment of the viability of a business, it means that a firm is either not earning what is expected (i.e. it has a below normal rate of return) or is not meeting its obligations. It is not synonymous with bankruptcy because bankruptcy is more of a formal and legal definition. A(...) Read More
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- Cash collateralCash and cash equivalents held by the debtor in Chapter 11 subject to liens of other parties. Read More
- Chandler Act of 1938Legislation providing substantial modifications to the Bankruptcy Act of 1898. Read More
- Chapterthe Bankruptcy Code is organized into Chapters. Except for Chapter 12, the Chapters of the present code are all odd-numbered and are enumerated with Arabic numerals. (Before the Bankruptcy Reform Act of 1978, the Chapters were numbered with Roman numerals.) Chapters 1, 3, and 5 cover matters(...) Read More
- Chapter 7Liquidation proceedings; generally assets are sold by a trustee and the company ceases operation. (Individuals may file Chapter 7 also.) Read More
- Chapter 9Bankruptcies of municipalities; only a few of these are filed each year; over the period 1980 through 1988 there averaged about 4 Chapter 9 filings per year. Read More
- Chapter 10A new chapter of the bankruptcy code proposed in 1992 and pending in 1993. Chapter 10, like Chapter XI of the old code, is designed for small business reorganizations. Read More
- Chapter 11Reorganization proceedings, generally for business entities; the debtor maintains control of the business in Chapter 11 (unless the Court appoints a trustee). Read More
- Chapter 12family farmer bankruptcies; created by Congress in 1986 (Chapter 12 became effective on November 26, 1986 and is now a permanent Chapter of the Bankruptcy Code); only a family owned farm or fishing business can qualify for Chapter 12 and it must have debt less than $1.5 million and have 50% of(...) Read More
- Chapter 13Bankruptcy proceedings for an individual with the intention of rescheduling the individual’s debt (rather than liquidating the individual’s assets and debt; an individual files under Chapter 7 to liquidate); Chapter 13 is referred to as wage-earner bankruptcy, personal bankruptcy or consumer(...) Read More
- Chapter 20An unofficial term describing the filing of a Chapter 7 proceeding followed by a Chapter 13. The Chapter 7 filing eliminates unsecured debts while the Chapter 13 filing handles continuing liens. Read More
- Chapter 22An unofficial term describing a company that has filed for Chapter 11 twice. Read More
- Chapter 33An unofficial term describing a company that has filed for Chapter 11 three times. Read More
- Chapters X, XI and XIIBefore the Chapter 11 of the Bankruptcy Reform Act of 1978, these three chapters of bankruptcy existed for company bankruptcies that involved reorganization. Chapter X involved reorganization for big companies that held public debt or equity, Chapter XI was for readjustment of debts of(...) Read More
- claimsRights to repayment made by creditors against a debtor; they may be liquidated, unliquidated, fixed, contingent, matured, unmatured, secured, unsecured, subordinated, legal or equitable. See specific entries and see priority of claims. Read More
- ClassEach of the different categories of claims against a debtor. Read More
- CollateralThe property which is subject to a lien. A creditor with rights in collateral is a secured creditor and has additional protections in the Bankruptcy Code for the claim secured by collateral. The measure of the secured claim is the value of the collateral available to secure the claim: it is(...) Read More
- ConfirmationThe final approval by the bankruptcy court of a debtor’s plan of reorganization. Confirmation takes place after the plan has been approved by creditors. Read More
- Contested matterA dispute among the parties to a bankruptcy proceeding, instituted by the filing of a motion of the court. Read More
- Convenience claims Under a plan of reorganization or liquidation, claims that are small (e.g. in the hundreds or thousands of dollars range) and numerous are often grouped into a single class and settled for cash for administrative convenience. Read More
- ConversionChanging chapters in bankruptcy (e.g., converting from Chapter 11 to Chapter 7 or vice-versa). Read More
- Core proceedingsThose proceedings that are inherent in and fundamental to the administration of a bankruptcy case. Core proceedings are subject to the jurisdiction of the bankruptcy court. Non-core proceedings may be conducted outside the jurisdiction of the bankruptcy court. Read More
- CramdownConfirmation of a plan of reorganization over the objections of one or more classes of creditors. Read More
- Credit ReportA report outlining an individuals credit history, public records and credit worthiness. Read More
- CreditorThe person or organization to whom the debtor owes money or has some other form of legal obligation. Read More
- Creditors’ Committeea committee of representatives of a debtor’s creditors appointed by the U.S. Trustee. The committee acts on behalf of all creditors on negotiating a plan of reorganization and other major actions. In large, complex cases, there may be more than one such committee. Read More
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- debtorThe entity seeking protection from creditors under the bankruptcy laws. Read More
- Debtor-in-possessionThe debtor which remains in control of operations; as opposed to having a trustee operate the company. Read More
- Default (bankruptcy)The failure by an entity to abide by the covenants in a debt obligation or other agreement to which it is a party. The most common default is non-payment of interest or principal. Read More
- DelinquencyFailure to make payments when payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a “late fee” for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days(...) Read More
- Denial of DischargePenalty for debtor misconduct with respect to the bankruptcy case or creditors as a whole. The grounds on which the debtor’s discharge may be denied are found in 11 U.S.C. 727. When the debtor’s discharge is denied, the debts that could have been discharged in that case cannot be discharged in(...) Read More
- DepositionPart of the discovery or information-exchanging process of a legal proceeding, in which the attorney for the other party asks you questions, you answer with your attorney present, and a transcript of the proceedings is prepared. Read More
- Dischargable DebtsDebts that can be eliminated in bankruptcy. Certain debts are not dischargeable; that it, they may not be discharged through bankruptcy or may only be discharged through Chapter 13. Family support and criminal restitution are examples of debts which cannot be discharged. Debts incurred by(...) Read More
- Discharge (of indebtedness)The satisfaction or elimination of the debts of the debtor by the bankruptcy court. Read More
- Disclosure statementA comprehensive disclosure document sent to creditors when they are asked to vote on a plan of reorganization in Chapter 11. Read More
- DiscoveryThe information-exchanging process of a legal proceeding, including serving and answering interrogatories and requests for production of documents, and taking depositions. Read More
- DismissalThe termination of a bankruptcy proceeding. The bankruptcy court can dismiss a case if it deems that the debtor or three creditors should not have filed or that a plan can never be formulated. See also conversion. Read More
- DistressedUsed to describe securities, companies and related items in or near bankruptcy or insolvency. The term does not have a strict, technical or legal definition. For example, a distressed security might be a security where the issuer has defaulted or a security that is selling at a substantially(...) Read More
- DocketThe schedule on which the clerk of the court records all motions, pleadings, memoranda, orders and all other court filings. Read More
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- Effective dateThe date on which a plan of reorganization is implemented; usually it occurs after all the conditions to a plan of reorganization have been satisfied. Read More
- Equitable subordinationThe lowering of priority of a claim because the holder of the claim is found to be guilty of some kind of improper conduct. Read More
- EquityA homeowner’s financial interest in a property. Equity is the difference between the value of the property and the amount still owed on its mortgage and other liens. Read More
- ExaminerA professional appointed by the bankruptcy court to investigate and oversee certain aspects of the debtor or the proceedings. (By way of comparison, the role of the trustee is to operate the business of the debtor whereas the role of the examiner is to investigate and report to the court.) Read More
- Exchange offerAn offer by an issuer of debt securities to exchange new securities with less onerous provisions for currently outstanding securities. Companies often make exchange offers in an attempt to avoid bankruptcy. Read More
- Exclusivity (period of)A debtor in Chapter 11 has the exclusive right to file a plan of reorganization for the first 120 days of its bankruptcy. Thereafter, unless the period of exclusivity is extended by the court, other parties may file reorganization plans. Read More
- Executory contractA contract in which some or all of the obligations of each party have not yet been completed. The debtor-in-possession (or trustee) is allowed to reject unilaterally certain executory contracts. Read More
- ExemptProperty that is exempt is removed from the bankruptcy estate and is not available to pay the claims of creditors. The debtor selects the property to be exempted from the statutory lists of exemptions available under the law of his state. The debtor gets to keep exempt property for use in(...) Read More
- ExemptionsExemptions are the lists of the kinds and values of property that is legally beyond the reach of creditors or the bankruptcy trustee. What property may be exempted is determined by state and federal statutes, and varies from state to state. Read More
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- FailureAn economic assessment of the viability of a business, it means that a firm is either not earning what is expected (i.e. it has a below normal rate of return) or is not meeting its obligations. It is not synonymous with bankruptcy because bankruptcy is more of a formal and legal definition. A(...) Read More
- Fair Market ValueThe highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept. Read More
- Fee examinerAppointed by the court to monitor fees paid to professionals in bankruptcy cases. Read More
- FiduciaryOne who is entrusted with duties on behalf of another. The law requires the highest level of good faith, loyalty and diligence of a fiduciary, higher than the common duty of care that we all owe one another. The debtor in possession in a Chapter 11 is a fiduciary for the creditors, owing(...) Read More
- Filing feesThe fees one must pay in order to file for Chapter 7, Chapter 11, Chapter 12, or Chapter 13. Fees are set by the court not by your attorney. Read More
- First meeting of creditors (341 meeting)A mandatory meeting between creditors and the debtor. It is usually held within a month of the filing of bankruptcy but often occurs later when the debtor has filed its schedules of financial information. Read More
- ForeclosureThe legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. Read More
- Fraudulent conveyanceThe transfer of valuable assets from a company which i) occurs when the company is technically insolvent, ii) renders the company insolvent, or iii) is made for less than adequate consideration. The spate of leveraged buyouts and other highly leveraged transactions in the 1980's has spurred a(...) Read More
- Fresh startInformal term for the new accounting rules applicable to bankrupt companies. For companies that either file for Chapter 11 after January 1991 or emerge from Chapter 11 after June 1991, assets are to be valued at market value rather than at historical cost. Read More
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- Hardship DischargeA Chapter 13 bankruptcy is designed to create a three or five year program for repayment of debts for specific creditors in accordance with rules agreed upon by all parties and overseen by a court appointed trustee. If a debtor is unable to make good on his or her responsibilities under the(...) Read More
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- ImpairmentWhen a plan of reorganization alters the contractual rights of a class of holders of claims, that class is deemed to be impaired. A class that is unimpaired is deemed to automatically accept a plan of reorganization. Read More
- InsolvencyAnother term used to describe a firm that is failing; generally it means that a firm’s liabilities exceed its assets or that it is unable to satisfy its obligations as they come due. Read More
- InterestsThe equity interests of stockholders are often referred to in bankruptcy documents merely as “interests.” Read More
- InterrogatoriesWritten questions served by the opposing party that must be answered in writing as part of the discovery process. Read More
- Involuntary bankruptcyA bankruptcy initiated by at least three creditors holding unsecured claims aggregating at least $5000 against the debtor. Data from the U.S. Administrative Office of the Courts subdivides bankruptcies into voluntary and involuntary. Read More
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- Joint administrationThe combining of two or more bankruptcy proceedings for administrative convenience. Frequently, the cases of affiliated entities are jointly administered. Joint administration does not necessarily result in substantive consolidation. Read More
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- LienAn interest in real or personal property which secures a debt; the lien may be voluntary, such as a mortgage in real property, or involuntary, such as a judgment lien or tax lien. Read More
- Liquidating reorganizationAn informal term for a Chapter 11 proceeding when the company is essentially liquidated through one or more asset sales. Read More
- LiquidationThe dissolution of a company (or individual); usually operations cease and assets are sold by auction; Chapter 7 is usually employed for liquidations, business or personal. Read More
- Liquidation valueThe aggregate value of a business if its assets are sold piecemeal. Read More
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- Matrix A mailing list of creditors of the debtor. Done as part of the forms filled out for a Chapter 11 case. Read More
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- No Asset CaseA chapter 7 case where there are no assets available to satisfy any portion of the creditors' unsecured claims. Read More
- NOL (net operating loss)The same as tax loss carry-forward. Losses, for tax purposes, that can be carried forward and applied to reduce taxable income in future years. The Tax Reform Act of 1986 imposed stringent restrictions on the use of tax loss carry-forwards. Read More
- Non-business bankruptcyA bankruptcy categorized by the U.S. courts as a non-business bankruptcy; the debtor in a non-business bankruptcy is usually either an individual or a family farm; data from the U.S. Administrative Office of the Courts subdivides bankruptcies into business and non-business. Read More
- Nondischargeable debtDebt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony. Read More
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- PACER (Public Access to Court Electronic Records)A service provided by the court system that gives case filing information. PACER requires an IBM-compatible computer equipped with internet access. Read More
- PerfectionWhen a secured creditor has taken the required steps to perfect his lien, the lien is senior to any liens that arise after perfection. A mortgage is perfected by recording it with the county recorder; a lien in personal property is perfected by filing a financing statement with the secretary(...) Read More
- Period of exclusivity A debtor in Chapter 11 has the exclusive right to file a plan of reorganization for the first 120 days of its bankruptcy. Thereafter, unless the period of exclusivity is extended by the court, other parties may file reorganization plans. The same as Exclusivity Read More
- Personal bankruptcyFiled by an individual; also called a household bankruptcy, consumer bankruptcy or wage-earner bankruptcy. (see Chapter 13 and Chapter 12). Read More
- Personal PropertyProperty that is not real property or affixed to real property, such as cars, stock, furniture, etc. Read More
- Petition (or bankruptcy petition or petition for relief)The document that commences a bankruptcy proceeding. Read More
- Plan of reorganizationThe document setting forth how a bankrupt company plans to satisfy its creditors. The plan of reorganization is the cornerstone of a successful Chapter 11 bankruptcy. Read More
- Post-petitionOccurring after the filing of a petition. Read More
- Pre-petitionOccurring before the filing of a bankruptcy petition. Read More
- PreferenceA payment by a debtor made during a specified period (90 days or one year) prior to the filing that favors one creditor over others. Preference payments can usually be recovered and returned to the debtor’s estate. Read More
- Prepackaged bankruptcyA situation where a company and its creditors agree to a plan of reorganization before the company files a bankruptcy petition. In a true prepackaged bankruptcy, a plan of reorganization is circulated and approved by creditors before the petition is filed. The court then confirms the plan and(...) Read More
- Priority claimsAdministrative expenses and salaries, wages, employee benefits, customer deposits and taxes which occurred pre-petition. Read More
- Pro ratalegal term, from Latin, meaning proportionately. Read More
- Proof of claimForm filed by a creditor setting out its claims against a bankruptcy debtor. Read More
- Property of the EstateThe property that is not exempt and belongs to the bankruptcy estate. Property of the estate is usually sold by the trustee and the claims of creditors paid from the proceeds. Read More
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- ReaffirmThe debtor can chose to reaffirm debts that would otherwise be discharged by the bankruptcy. Generally, when a debt is reaffirmed, the parties to the reaffirmed debt have the same rights and liabilities that each had prior to the bankruptcy filing: the debtor is obligated to pay and the(...) Read More
- ReceiverParticularly in foreign proceedings, or state court proceedings, a person appointed by the court to take custody of a debtor’s property. Read More
- Relief from StayA creditor can ask the judge to lift the automatic stay and permit some action against the debtor or the property of the estate. If the motion is granted, the moving party (but no one else) is free to take whatever action the court permits. Relief can be absolute, for example, permitting the(...) Read More
- Reorganization The resolving of a Chapter 11 bankruptcy by the emergence of the debtor as a viable business. Generally, the company agrees with creditors on a plan for payment of their claims (plan of reorganization) and emerges from Chapter 11 after the plan is confirmed by the court. Read More
- RepossessionOnce in default, as defined by the creditor in the security agreement, occurs, the creditor can: repossess the collateral by self-help (depending on state law) or with the aid of a court order, dispose of the collateral by public or private foreclosure sale, retain the collateral in(...) Read More
- RestructuringA general term applied to an out-of-court attempt to reorganize and satisfy debts. Similar to workout Read More
- Retired Benefits Bankruptcy Protection Act Passed June 16, 1988. Allows the debtor to continue to pay insurance premiums for employees during the course of a bankruptcy. Read More
- Reverse leveraged buyoutWhen a company that was a leveraged buyout restructures its (usually unmanageable) debt by issuing new equity (usually in exchange for some or all of the outstanding debt incurred during the original leveraged buyout). Read More
- Rule 2004The same as Bankruptcy Rule 2004. A provision of the Bankruptcy Code that allows one party in a bankruptcy proceeding to compel discovery or other examination against another party. Read More
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- SchedulesThe debtor must file the required lists of assets and liabilities to commence a bankruptcy case, collectively called the schedules. Read More
- Section 77 (of 1933 Act)Provided for reorganization of railroads (during the 1930s a large number of railroads encountered extreme financial difficulty); (see also Section 77B). Read More
- Section 77BFollowed Section 77; provided for reorganization of companies other than railroads. Read More
- Section 304The section of the present U.S. Bankruptcy code that handles multi-national bankruptcies; only a few of these are filed each year; over the period 1980 through 1988 there averaged about 6 filings of Section 304 per year. Read More
- Secured creditorsOne of two general types of creditors of a company or individual. Secured creditors have a lien on property of the company or individual. Read More
- Secured DebtA claim secured by a lien in the debtor’s property by reason of the debtor’s agreement or an involuntary lien such as a judgment or tax lien. The creditor’s claim may be divided into a secured claim, to the extent of the value of the collateral, and an unsecured claim equal to the remainder of(...) Read More
- Set-offThe ability to discharge or reduce a debt by applying a counter claim between the same parties. For example, a bank which has lent money to a debtor may attempt to satisfy some or all of the loan by seizing the debtor’s deposits at the bank. Read More
- Skeleton filingTerm used at bankruptcy courts to describe a bankruptcy filing in which not all the necessary forms have been filed. Certain courts allow a case to commence if only certain important forms are filed so long as the balance of required forms are forthcoming within a certain period of time. Read More
- Small claims (also sometimes called convenience claims)Under a plan of reorganization or liquidation, claims that are small (e.g. in the hundreds or thousands of dollars range) and numerous are often grouped into a single class and settled for cash for administrative convenience. Read More
- Straight bankruptcyAn informal term for a Chapter 7 bankruptcy or liquidation; used more commonly to describe liquidation before the Bankruptcy Reform Act of 1978. Read More
- Straight bankruptcyAn informal term for a Chapter 7 bankruptcy or liquidation; used more commonly to describe liquidation before the Bankruptcy Reform Act of 1978. Read More
- Substantial abuseA term that refers to the abusing of the privilege to file a petition. It usually describes fraud in cases of personal bankruptcy. Read More
- Substantive consolidationThe combination of the estate of one debtor with the estate of one or more other debtors and the application of the combined estate to satisfy their combined liabilities. Substantive consolidation is often considered (although infrequently applied) in the case of parent/subsidiary debtors and(...) Read More
- Super-priority claimAn administrative claim that will be paid ahead of other administrative and priority claims. Read More
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- Tax loss carry-forwardLosses, for tax purposes, that can be carried forward and applied to reduce taxable income in future years. The Tax Reform Act of 1986 imposed stringent restrictions on the use of tax loss carry-forwards. Read More
- TrusteeAn agent of the court who manages the property of the debtor for the benefit of the creditors. The court appoints a trustee in most Chapter 7 cases and in Chapter 11 cases when it determines that the debtor’s management should not remain in control. This type of trustee should be distinguished(...) Read More
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- United States TrusteeAn agent of the U.S. Department of Justice appointed to assist in bankruptcy cases. The U.S. Trustee administers many of the duties of the court including appointing committees, appointing trustees and examiners, scrutinizing bankruptcy documents, etc. The United States Trustee Program was(...) Read More
- Unsecured creditorOne of two general types of creditors of a company or an individual. The unsecured creditors have no liens on the property of the company or individual. Read More
- Unsecured debtA claim or debt is unsecured if there is no collateral that is security for the debt. Most consumer debts are unsecured. Read More
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- VCIS (Voice Case Information System)A touch-tone telephone service provided by the court system that gives case filing information. Read More
- Voluntary bankruptcyBankruptcy filed by the debtor itself; data from the U.S. Administrative Office of the Courts subdivides bankruptcies into voluntary and involuntary. Read More
- Vulture fundsInvestment groups that are prominent in the restructuring of financially distressed and bankrupt companies usually by the buying or selling of large pieces of the distressed company’s debt and/or equity. (also referred to as vulture capitalists or vulture investors) Read More
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- Wage-earner bankruptcyTerm used to refer to Chapter 13 Bankruptcy Read More
- WorkoutAn arrangement, outside of bankruptcy, by a debtor and its creditors for payment or re-scheduling of payment of the debtor’s obligations. Usually applies to an informal agreement between a business and its creditors, although it can be a formal agreement and it can apply to consumer debtors. Read More
More Resources From The Web
The National Bankruptcy Archives – For those with interest in how bankruptcy law has evolved and changed in the US
National Consumer Law Center – non partisan information about bankruptcy and the do’s and don’ts when considering it.
Bankrate – Blog Article, 7 Tips for recovering from Bankruptcy
NOLO – What Bankruptcy can and cannot do in terms of debt relief
The Balance – Overcoming the stigma of filing for bankruptcy
Other Legal Glossaries of Interest
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Wiils & Estate Glossary
Criminal law and DUI
Criminal Law & DUI Glossary
divorce-and-family-law
Divorce & Family Law Glossary
realestate
Real Estate Glossary
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