Terms

Question 1

The debtor in an involuntary proceeding.

Answer 1

Alleged debtor

Question 2

A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court.

Answer 2

Adversary proceeding

Question 3

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

Answer 3

Assume

Question 4

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

Answer 4

Automatic stay

Question 5

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 United States bankruptcy code

Answer 5

Bankruptcy

Question 6

An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the US 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.

Answer 6

A bankruptcy Administrator

Question 7

The informal name for title 11 of United States federal bankruptcy law

Answer 7

Bankruptcy code

Question 8

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

Answer 8

Bankruptcy court

Question 9

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.)

Answer 9

Bankruptcy estate

Question 10

A judicial officer of the United States District Court who is the court official with decision making power over federal bankruptcy cases.

Answer 10

Bankruptcy judge

Question 11

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

Answer 11

Bankruptcy petition

Question 12

Chapter 7

Answer 12

The chapter of the bankruptcy code providing for liquidation (i.e., the sale of a debtor’s non-exempt property and the distribution of the proceeds to creditors.)

Question 13

Chapter 9

Answer 13

The chapter of the bankruptcy code providing for re-organization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).

Question 14

Chapter 11

Answer 14

The chapter of the bankruptcy code providing (generally) for re-organization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of re-organization to keep its business alive and pay creditors overtime. People in business or individuals can also seek relief in chapter 11.

Question 15

Chapter 12

Answer 15

The chapter of the bankruptcy code providing for adjustments of debts of a “family farmer” , or a “family fisherman” as those terms are defined in the bankruptcy code.

Question 16

Chapter 13

Answer 16

The chapter of the bankruptcy code 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 3 to 5 years.

Question 17

Chapter 15

Answer 17

The chapter of the bankruptcy code dealing with cases of cross border insolvency. 

Question 18

Claim

Answer 18

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

Question 19

Confirmation

Answer 19

Bankruptcy judges’s approval of a plan of re-organization or liquidation in chapter 11, or payment plan in chapter 12 or 13.

Question 20

Consumer debtor

Answer 20

A debtor whose debts are primarily consumer debts. 

Question 21

Consumer debts

Answer 21

Debts incurred for personal, as opposed to business, needs.

Question 22

Contested matter

Answer 22

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

Question 23

Contingent claim

Answer 23

A claim that may be owed by the debter under certain circumstances, EG, where the debtor or is a cosigner on another person‘s loan and that person fails to pay.

Question 24

Creditor

Answer 24

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

Question 25

Credit counseling

Answer 25

Generally refers to two events in individual bankruptcy cases: 1. The “individual or group briefing” from a nonprofit budget and credit counseling agency that individual debtors must attend prior to filing under any chapter of the bankruptcy code; and 2. The “instructional course in personal finance management” in chapter 7 and 13 that an individual debtor must complete before a discharge is entered. There are exceptions to both requirements for certain categories of debtors, exigent circumstances, or if the US trustee or bankruptcy administrator have determined that there are insufficient approved credit counseling agencies available to provide the necessary counsel.

Question 26

Creditors’ meeting

Answer 26

See 341 meeting.

Question 27

Current monthly income

Answer 27

The average monthly income received by the debtor over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from non-debtors and income from the debtor’s spouse if the petition is a joint petition, but not including Social Security income and certain other payments made because the debtor is the victim of certain crimes.

Question 28

Debtor

Answer 28

A person who has filed a petition for relief under the bankruptcy code. 

Question 29

Debtor education

Answer 29

Credit counseling for a debtor. 

Question 30

Sua sponte

Answer 30

The decision made, or action taken, by a judge of his own accord, with no motion or request having been made by any party to the legal action.

Question 31

 Defendant

Answer 31

An individual or business against whom a lawsuit is filed

Question 32

Discharge

Answer 32

A release of the debtor from personal liability for certain dischargeable deaths set forth in the bankruptcy code. (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.)

Question 33

Dischargeable debt

Answer 33

A debt for which the bankruptcy code allows the debtor’s personal liability to be eliminated.

Question 34

Disclosure statement

Answer 34

A written document prepared by the Chapter 11 debtor or other plan proponent that is designed to provide “adequate information“ to creditors to enable them to evaluate the Chapter 11 plan of re-organization.

Question 35

Equity

Answer 35

The value of a debtor’s interest in property that remains after liens and other creditor’s interests are considered. (Example: if a house valued at $100,000 is subject to an $80,000 mortgage, there is $20,000 of equity.)

Question 36

Executory contract or lease

Answer 36

Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contractor leases executors, a debtor may assume it or reject it.)

Question 37

Exemptions, exempt property

Answer 37

Certain property owned by an individual debtor that the bankruptcy code or applicable state law permits the debtor to keep from unsecured creditors. For example, in some states the debtor may be able to exempt all or a portion of the equity in the debtor’s primary residence (homestead exemption), or some or all “tools of the trade“ used by the debtor to make a living (I. E., Auto tools for an auto mechanic or dental tools for a dentist). The availability and amount of property the debtor may exempt depends on the state the debtor lives in.

Question 38

Insider (of individual debtor)

Answer 38

Any relative of the debtor or a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or corporation of which the debtor is a Director, officer, or person in control.

Question 39

Insider (of corporate debtor)

Answer 39

A Director, officer, or person in control of the debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a relative of the general partner, Director, officer, or person in control of the debtor. 

Question 40

Joint administration

Answer 40

A court-approved mechanism under which two or more cases can be administered together. (Assuming no conflict of interest, these separate businesses or individuals can pull their resources, hire the same professionals, ET see.)

Question 41

Joint petition

Answer 41

One bankruptcy petition filed by a husband and wife together.

Question 42

Lien

Answer 42

The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.

Question 43

Liquidation

Answer 43

A sale of a debtor’s property with the proceeds to be used for the benefit of the creditors

Question 44

Liquidated claim

Answer 44

A creditor’s claim for a fixed amount of money.