Bankruptcy Terms

Question 0

Adversary Proceeding

Answer 0

A lawsuit filed in the bankruptcy court which is related to the debtor’s bankruptcy case.

examples: complaints to determine the dischargeability of a debt or complaints to determine the extent and validity of liens

Question 1

Adequate protection

Answer 1

payment to a secured creditor to protect the value of the creditor’s lien during the bankruptcy proceeding to prevent loss due to depreciation or non payment of a senior lien.

Question 2

Assets

Answer 2

every form of property that the debtor owns

Question 3

Automatic stay

Answer 3

injunction issued automatically upon he filing of a bankruptcy case which prohibits collection actions against the debtor, the debtors property or the property of the estate

Question 4

Avoidance

Answer 4

The bankruptcy Code permits the debtor to eliminate (avoid) some kinds of liens that interfere with an exemption.

most liens attached to the debtors home can be avoided if the total of the liens is greater than the value of the property in which exemption is claimed i.e. lien stripping

Question 5

Avoidance powers

Answer 5

rights given to the bankruptcy trustee (or debtor in possession in chapter 11) to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case

Question 6

Bankruptcy Code

Answer 6

Title 11 of the United States Code

Question 7

Bankruptcy Estate

Answer 7

The estate is all of the legal and equitable interests of the debtor as of the commencement of the case.