CC Brown Law – Common Legal Terms Used in Bankruptcy Cases

CC Brown Law Common Legal Terms Used in Bankruptcy Cases

Bankruptcy proceeding is integrated to provide debtors, creditors, judiciary employees, and the general public with a basic explanation of bankruptcy and how it works. But most of the debtors who file a bankruptcy petition, and many of their creditors are not well aware of the bankruptcy proceedings. This article explains, many of the legal terms that are used in cases filed under the Bankruptcy Code.

Automatic stay:

An injunction which automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

Bankruptcy administrator:

An officer who is responsible for snooping the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties. .

Bankruptcy code:

The informal name for title 11 of the United States Code (11 U.S.C. 101-1330), the federal bankruptcy law.

Bankruptcy petition:

Document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case.

Chapter 7:

This chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor's taxable property and the distribution of the proceeds to creditors.)

Chapter 12:

This chapter providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code.

Chapter 13:

This chapter is the 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 15:

This chapter dealing with cases of cross-border insolvency.

Creditor:

One to whom the debtor owes money or who claims to be owed money by the debtor.

Debtor:

A person who has filed a petition for relief under the Bankruptcy Code.

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:

Characterization of a debtor's status after bankruptcy, i.e., free of debts.

Joint petition:

Bankruptcy petition filed by a husband and wife together.

341 meeting:

Meeting of creditors happened by section 341 of the Bankruptcy Code at which the debtor is questioned under oath by creditors, a trustee, examiner, or the U.S. trustee about his/her financial affairs. Also called creditors' meeting.

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