Bankruptcy Information - Common Courtroom Terms

Bankruptcy- Bankruptcy Terminology, 45 Terms to Know and Understand

Many debtors and creditors cognize small of the bankruptcy process. These terms are to help assist people in apprehension bankruptcy. The terms provided are as defined from the Populace Information Series of the Bankruptcy Judges Division.

TERMS & DEFINITIONS

Adversary Proceeding –
Type Type Type Type Type A lawsuit arising in or related to to a bankruptcy lawsuit that is commenced by filing a ailment with the bankruptcy court.

Automatic Stay –
Associate In Nursing injunction that automatically halts lawsuits, foreclosure, garnishments, and all aggregation activity against the debtor the minute a bankruptcy petition is filed.

Bankruptcy –
A legal process for dealing with debt problems of people and businesses; specifically, a lawsuit filed under one of the chapters of statute title 11 on the United States Code (the Bankruptcy Code).

Bankruptcy Judge –
A judicial officer of the United States territory tribunal who is the tribunal functionary with the decision-making powerfulness over federal bankruptcy cases.

Bankruptcy Factory –
A business not authorized to drill law that supplies bankruptcy counseling and set ups bankruptcy petitions.

Bankruptcy Request –
A formal request for the protection of the federal bankruptcy laws. (There is an functionary word form for bankruptcy petitions.)

Bankruptcy Trustee –
Type Type A private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases to stand for the interests of the bankruptcy estate and the debtor’s creditors.

Chapter 7 –
The chapter of the Bankruptcy Code providing for “liquidation,” i.e., the sale of a debtor’s nonexempt property and the statistical distribution of the return to creditors.

Chapter 7 Trustee –
A person appointed in a chapter 7 lawsuit to stand for the interests of the bankruptcy estate and the unsecured creditors. (The trustee’s duties include reviewing the debtor’s request and schedules, liquidating the property of the estate, and making statistical distributions to the creditors. The legal guardian may also convey actions against creditors or the debtor to retrieve property of the bankruptcy estate.)

Chapter 13 –
The chapter of the Bankruptcy Code providing for accommodation of debts of an individual with regular income. (Chapter 13 allows a debtor to maintain property and pay debt over time, usually three to five years.)

Exempt –
Type Type Type Type Type Type Type Type A verbal description of any property that a debtor may forestall creditors from recovering.

Exemption –
Property that the Bankruptcy Code Oregon applicable state law licenses a debtor to maintain from creditors.

Exempt Property –
Property or value in property that a debtor is allowed to retain, free from the claims of creditors who make not have got liens.

Lien –
A charge upon specific property designed to secure payment of a debt or a public presentation obligation.

Liquidation –
A sale of a debtor’s property with the return to be used for the benefit of the creditors.

Claim –
A creditor’s averment of a right to payment from a debtor or the debtor’s property.

Complaint –
The first or initiatory written document in a lawsuit that notifies the tribunal and the suspect of the evidence claimed by the complainant for an awarding of money or other relief against the defendant.

Confirmation –
Approval of a program of reorganisation by a bankruptcy judge.

Consumer Debts –
Debt incurred for personal, as opposing to business, needs.

Contingent Claim –
A claim that may be owed by the debtor under certain circumstances, for example, where the debtor is a cosignatory on another person’s loan and that person neglects to pay.

Creditor –
A individual to whom or business to which the debtor owes money or that claims to be owed money by the debtor.

Debtor –
A individual who have filed a request for relief under the bankruptcy laws.

Defendant –
Associate In Nursing 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 word form personal liability for certain debts known as dischargeable debts (defined below) and forestalls the creditors owed those debts from taking any action against the debtor or the debtor’s property to accumulate the debts. The discharge also forbids creditors from communicating with the debtor regarding their debt, including telephone calls, letters, and personal contact.)

Dischargeable Debt –
Type Type A debt for which the Bankruptcy Code allows the debtor’s personal liability to be eliminated.

Disclosure Statement –
A written written document prepared by the chapter 11 debtor or other program advocate that is designed to supply “adequate information” to creditors to enable them to measure the chapter 11 program 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 topic to a $30,000 mortgage, there is $30,000 of equity.)

Liquidated Claim –
Type Type Type Type Type Type Type Type Type Type A creditor’s claim for a fixed amount of money.

No-Asset Case –
A chapter 7 lawsuit where there are no assets available to fulfill any part of the creditor’s unsecured claims.

Non Dischargeable Debt –
A debt that cannot be eliminated in bankruptcy.

Objection to Discharge –
A trustee’s Oregon creditor’s expostulation to the debtor’s being released from personal liability for certain dischargeable debts.

Objection to Exemptions –
A trustee’s Oregon a creditor’s expostulation to a debtor’s attempt to claim certain property as exempt, i.e., not apt for any prepetition debt of the debtor.

Party in Interest –
A political party who is actually and substantially interested in the subject matter, as eminent from one who have only a nominal or technical interest in it.

Plan –
A debtor’s elaborate verbal description of how the debtor suggests to pay creditors’ claims over a fixed clip period of time.

Plaintiff –
A individual or business that data data files a formal ailment with the court.

Preferential Debt Payment –
A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy (or within one twelvemonth if the creditor was an insider) that gives the creditor more than the creditor would have in a chapter 7 case.

Priority –
The Bankruptcy Code’s statutory ranking of unsecured claims that determines the order in which unsecured claims will be paid if there is not adequate money to pay all unsecured claims in full.

Proof of Claim –
A written statement describing the ground a debtor owes a creditor money. (There is an functionary word form for this purpose.)

Reaffirmation Agreement –
Associate In Nursing understanding by a chapter 7 debtor to go on paying a dischargeable debt after the bankruptcy, usually for the intent of keeping the collateral or mortgaged property that would otherwise be subject to repossession.

Secured Creditor –
Associate In Nursing person or business retention a claim against the debtor that is secured by a lien on the 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 have got the right to prosecute specific pledged property upon default.

341 Meeting –
Type Type Type A meeting of creditors at which the debtor is questioned under curse by creditors, a trustee, examiner, or the United States legal guardian about his/her financial affairs.

Typing Service –
A business not authorized to drill law that set ups bankruptcy petitions.

United States Trustee –
Associate In Nursing officer of the Justice Department responsible for supervising the disposal of bankruptcy cases, estates, and trustees, monitoring programs and revelation statements, monitoring creditors’ committees, monitoring fee applications, and performing other statutory duties.

Unscheduled Debt –
A debt that should have been listed by a debtor in the agendas filed with the tribunal but was not. (Depending on the circumstances, an unscheduled debt may or may not be discharged.)

These terms are for the general populace to have got a better apprehension of bankruptcy and the terminology that accompanies the filing or enquiry of a bankruptcy.

Article written by Crick Munster