THE BANKRUPTCY DICTIONARY AND GLOSSARY BY RICHARD
US Bankruptcy law is a confusing mix of words, phrases,
rules, and procedures. This dictionary presents some of the vocabulary
used in bankruptcy discussions and gives definitions and explanations
that may help to understand this very confusing subject.
These are not official definitions. Some
of the entries are defined differently in the Bankruptcy laws
and rules. This dictionary tries to give simpler and more understandable
definitions. But be warned...as soon as we differ from an official
definition, there is a danger of incorrect interpretation. This
dictionary can be used as a general guide to understanding...it
should not be relied upon for legal precision.
Some warnings: The presentation, format, and content
of this dictionary are Copyright by Richard Madison who retains
all rights thereto. The author makes no warranties and assumes
no liability resulting from the use of this dictionary or any
of its content.
Readers may copy and reproduce an insubstantial part
of this publication for personal, non-commercial use.
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Words in this type are defined in this dictionary.
- The procedure under US federal law which allows a debtor
to discharge or terminate (wipe out) dischargeable debts.
- A part of the Bankruptcy law. The chapters of most interest
to debtors are Chapter 7 liquidation, Chapter 11 Reorganization,
and Chapter 13, Wage Earner plan.
- A person or organization that is owed money. Creditors may
be secured, unsecured, priority, or non-priority according to
- The person or organization filing the bankruptcy petition.
- Dischargeable Debt
- An amount owed to a creditor that can be terminated or wiped
out in a bankruptcy proceeding. Some debts are non-dischargeable.
- A process in the bankruptcy proceeding that takes the property
and assets (with some exceptions) from the debtor, reduces the
assets to cash and uses the proceeds to pay the creditors.
- Non-Dischargeable Debt
- An amount owed to a creditor that cannot be terminated or
wiped out in a bankruptcy proceeding. Some debts are Dischargeable.
- The application or paper that starts a bankruptcy proceeding
. The petition contains the name, address, and other general information
about the debtor. It also contains a request to the court to give
the debtor the benefits of the bankruptcy laws. The petition has
schedules attached to it containing the information required for
the bankruptcy court. The petition must be signed by the debtor.
If the debtor files the petition, it is "voluntary".
If creditors file the petition, it is "involuntary".
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© Richard Madison, 2000 Last edit
20:40 6 Apr 2000
Law Office of Richard Madison