Upon filing of a petition all legal actions against or involving debtor, including debt collection and lawsuits to which a debtor is a party, arre stayed until court allows them to proceed
Section of Bankruptcy law that allows individual and business debtors to have assets liquidated and debts discharged.
Section of Bankruptcy law that allows businesses to reorganize, continue functioning and pay creditors equitably according to a court-approved plan
Section of Bankruptcy law that allows an individual with regualar income to work out a plan to settle debts and pay creditors equitably according to a court approved plan
Post-filing procedure conducted by Trustee to allow creditors to examine debtor as to ability to pay
Debtor in Possession
In Chapter 11 and 13, debtor who continues to operate and remains in possession of assets that would be liquidated under Chapter 7
Conclusion of the Bankruptcy case: all debts that can be eliminated by the bankruptcy court are eliminated or reoganization plan is completed.
Assets which are exempt from the creditors' claims, such as secured assets the value of which does not exceed the amount of debt secured by them
Process by which non-exepmt assets are sold and assets are distributed equitably among creditors
Claims which may not be discharged in bankruptcy. Includes claims for money obtained by fraud, spousal and child support, student loans and damaged caused by a drunk driver.
Any payment to a creditor within 90 days prior to bankruptcy filing; may be set aside by Trustee
Priority unsecured claims
Claims which take priority over any others. Includes child support, unpaid taxes and unpaid wages.
Agreement between debtor and creditor to reaffirm a debt claimed in bankruptcy. Must be approved by court
A plan under Chapter 11 or 13 to allow a debtor to continue to function while paying off existing creditors on an equitable basis
Formal process of removing assets from the bankruptcy estate so they are no longer available for liquidation
A lawsuit arising in or related to a bankruptcy case, started by filing a complaint in bankruptcy court
Power of Trustee to avoid (set aside) preferential transfers and recover asset transferred for benifit of estate
The bankruptcy judges in regular active service in each federal judicial district; a division of the federal district court
All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, including property owned or held by another person, in which the debtor has an interest
A disputed matter, other than an objection to a claim, that must be resolved by the court but does not arise to the level of an adversary proceeding
A claim that may be owed by the debtor under certain circumstances yet to occur (e.g., the debtor is a guarantor on another person's promissory note)
Debtor in Chapter 11 or 13 reorganization may voluntary convert to a Chapter 7 liquidation
Process by which bankruptcy court imposes a plan for reorganization over the objections of one or more creditors
Transaction by debtor within one year before filing petition in which debtor's actual intent is to defraud creditors or in which the debtor did not receive reasonably equivalent value in transaction
A person with sufficiently close relationship with the debtor that he or she is not dealing at arms length with debtor
Primarily in Chapter 7, process by which debtor's assets are sold and cash distributed among creditors
In Chapter 7, determination by trustee that the presumption of abuse does not arise because the debtor cannot in fact meet debts as they come due or the debtor's liabilities substaintially exceed debtor's assets
Office of US Trustee
Part of bankruptcy court, responsible in general for overseeing all bankruptcy proceedings for court
Official Creditors Committee
In Chapter 11, US Trustee may appoint a committee of the 7 largest unsecured creditors to monitor actions of the Debtor in Possession
Ordinary Course of business
The way in which others in the same business as the debtor conduct business
In Chapter 7 and 11, any individual as well as any entity recognized as an "artificial person" in the law may file Petition
Rule 2004 Examination
Expanded form of deposition in which creditor(s) may throughly examine debtor, insiders or other creditors
An individual who files a second bankruptcy case within six months of dismissal of an original case if first case was dismissed voluntarily by debtor or because debtor failed to follow court orders or prosecute the case
Debtor's petition is dismissed not discharged; debtor is returned to same position as before filing.