BANKRUPTCY 03 Flashcards
Fresh Start
The goal of federal bankruptcy law, to grant and debtor relief from some of her burdensome debts, while protecting creditors by requiring the debtor to pay more of his or her debts that would otherwise have been required prior to the 2005 act.
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
A federal act that substantially amended federal bankruptcy law. This act makes it more difficult for debtors to file for bankruptcy and have their unpaid debts discharged.
Bankruptcy Code
The name given to federal bankruptcy law, as amended.
Bankruptcy Reform Act of 1978
A federal act that substantially changed federal bankruptcy law. The act made it easier for debtors to file for bankruptcy and have their unpaid debts discharged. This act was considered debtor friendly.
Bankruptcy Courts
Special federal courts that hear and and decide bankruptcy cases.
U.S. Trustee
A federal government official who is responsible for handling and supervising many of the administrative tasks of a bankruptcy case.
Petition
A document filed with a bankruptcy court that starts a bankruptcy proceeding.
Voluntary Petition
A petition filed by a debtor that states that the debtor has debts.
Involuntary Petition
A petition filed by creditors of a debtor that alleges that the debtor is not paying her debts as they become due.
Order for Relief
An order that occurs upon the filing of either a voluntry petition of an unchallenged involuntary petition or an order that is granted after a trial of a challenged involuntary petition.
Meeting of the Creditors
A meeting of the creditors in a bankruptcy case that must occur within a reasonable time after an order for relief. The debtor must appear at this meeting.
Proof of Claim
A document required to be filed by a creditor that states the amount of her claim against the debtor.
Proof of Interest
A document required to be filed by an equity security holder that states the amount of her interest against the debtor.
Trustee
A legal representative of the debtor’s estate.
Automatic Stay
The suspension of certain legal actions by creditors against a debtor or the debtor’s property.
Discharge
A court order that relieves a debtor of the legal liability to pay her debs that were not paid in the bankruptcy proceeding.
Reaffirmation Agreement
An agreement entered into by a debtor with a creditor prior to discharge, where by the debtor agrees to pay the creditor a debt that would otherwise be discharged in bankruptcy. Certain requirements must be met for a reaffirmation agreement to be enforced.
Bankruptcy Estate
The debtor’s property and earnings that comprise the estate of a bankruptcy proceeding.
Exempt Property
Property that may be retained by the debtor pursuant to federal or state lay that does not become part of the bankruptcy estate.
Homestead Exemption
Equity in a debtor’s home that the debtor is permitted to retain.
Fraudulent Transfer
A transfer of a debtor’s property or an obligation incurred by a debtor within 2 years for the filing of a petition where the debtor has actual intent to hinder, delay, or defraud a creditor or the debtor received less than a reasonable equivalent in value, and the debtor was insolvent or unable to pay at the time the transfer was made or the obligation was incurred.
Chapter 7-Liquidation
A form of bankruptcy in which the debtor’s nonexempt property is sold for cash, the case is distributed to the creditors and any unpaid debts are discharged.
Abusive Filing
A chapter 7 filing that is found to be an abuse of Chapter 7 liquidation bankruptcy. In such a case, the court can dismiss the case or convert the case to a Chapter 13 or Chapter 11 proceeding, with the debtor’s consent.
State Median Income
For any size family, income for which half of the state’s families of this size have incomes above this figure and half of the state’s families of this size have incomes less than this figure.
