Glossary

• Jurisdiction: United States

Glossary

Adversary Proceeding

A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. A nonexclusive list of adversary proceedings is set forth in Fed. R. Bankr. P. 7001.

Assumption

An agreement to continue performing duties under a contract or lease.

Automatic Stay

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

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the U.S. Code (the Bankruptcy Code).

Bankruptcy Administrator

An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the U.S. Trustee, is responsible for supervising the administration of bankruptcy cases, estates and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties. Compare U.S. Trustee.

Bankruptcy Code

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

Bankruptcy Court

The bankruptcy judges in regular active service in each district; a unit of the district court.

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)

Bankruptcy Judge

A judicial officer of the U.S. district court who is the court official with decision-making power over federal bankruptcy cases.

Bankruptcy Petition

The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) that opens the bankruptcy case. (There are official forms for bankruptcy petitions.)

Chapter 7

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

Chapter 9

The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities and school districts).

Chapter 11

The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)

Chapter 12

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

Chapter 13

The chapter of the Bankruptcy Code providing for the 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

The chapter of the Bankruptcy Code dealing with cases of cross-border insolvency.

Claim

A creditor's assertion of a right to payment from the debtor or the debtor's property.

Confirmation

Bankruptcy judge's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13.

Consumer Debtor

A debtor whose debts are primarily consumer debts.

Consumer Debt

A debt incurred for personal, as opposed to business, needs.

Contested Matters

Those matters, other than objections to claims, that are disputed but are not within the definition of adversary proceeding contained in Rule 7001.

Contingent Claim

A claim that may be owed by the debtor under certain circumstances, e.g., where the debtor is a cosigner on...