| A | B |
|---|
| Assets | The items a business or person owns; the property owned by a debtor that can be used to pay debts. |
| Automatic Stay | An order that stops the creditor from trying to collect the assets of the debtor. |
| Bankrupt | A business or person declared by the court to be unable to pay debts. |
| Bankruptcy | The process of declaring a person or business bankrupt and taking the assets and distributing them among the creditors. |
| Chapter 7 | Straight or liquidating bankruptcy. With a few exceptions, most debts are absolved. |
| Chapter 11 | Creditors form a committee to give guidance to the business so it can reestablish itself. |
| Chapter 13 | Opportunity for individuals to reorganize and to stop collection action against the assets to enable to individual to repay his or her debts. |
| Collateral | An asset given to guarantee the payment of an obligation. |
| Contingent | Possible, but not certain; dependant upon something that may or may not occur. |
| Creditor | Anyone who claims money or in the future may claim money against the debtor. |
| Debtor-in-possession | The person who files under a Chapter 11. He or she retains possession of the business but under the supervision of the bankruptcy court. |
| Discharge | The elimination of debts owed by the debtor through the bankruptcy court. |
| Entity | A thing that exists; can be a person, an estate, a trust, a governmental unit, or a United States trustee. |
| Exemption | A portion of assets a person can retain- determined by federal and/or state laws. |
| Involuntary Bankruptcy | A bankruptcy that is forced upon a person by a creditor (or creditors). |
| Liabilities | Money that is owed to another. |
| Liquidation | Act of converting assets to cash so creditors can be paid. |
| Local Rules | Rules established by the local bankruptcy court. |
| Malfeasance | The performance of an illegal act. |
| Meeting of Creditors | A meeting where the trustee and creditors may examine the debtor about aspects of the bankruptcy. |
| Noncontingent Claim | A claim that is not conditioned upon another. |
| Nonexempt Property | Property that has no federal or state exemptions. |
| Section 341 Notice | After the petition is filed, a notice is sent by the bankruptcy clerk to all creditors to give them information about who is going bankrupt and the date, time, and place of the meeting of creditors. |
| Petition | The document filed to initiate a bankruptcy. It lists assets, liabilities, and debts of the debtor. |
| Preferred Creditors | Creditors who are paid first in a bankruptcy. They are courts, attorney for the trustee, attorney for the debtor, IRS, state taxes, county government- property taxes. |
| Proof of Claim | The document that must be filed by the creditors to prove the debtor owes them money. |
| Reaffirm | To renew an obligation to pay a debt that had been discharged. Reaffirmation must be approved by the bankruptcy judge. |
| Redeem | To make a lump-sum payment to a secured creditor for the fair market value of the property. |
| Business Reorganization Bankruptcy | Another name for a Chapter 11 bankruptcy. |
| Schedules | The documents filed as part of the petition listing assets, liabilities, creditors, and property claimed as exempt. |
| Secured Collateral | Something that can be repossessed if the debt is not paid. |
| Secured Creditors | Individuals or businesses that hold title to property in possession of the debtor. Either they get their property back, or they are paid for the property. |
| Secured Debts | Money owed by the debtor which is guaranteed by collateral. |
| Straight Bankruptcy | Another name for a Chapter 7 bankruptcy. |
| Wage Earner Bankruptcy | Another name for a Chapter 13 bankruptcy. |
| Trustee | The person, appointed by bankruptcy court, who holds the property of the debtor for the benefit of the creditors. |
| Undersecured Creditors | Creditors who hold collateral that has or is declining in value. |
| Unliquidated | Referring to an amount that is still undetermined, not fixed, or not settled. |
| Unsecured Creditors | Creditors who have no collateral, such as hospitals, doctors, credit card companies, etc. They usually do not get their money back. |
| Unsecured Debts | Money owed where no collateral has been given. Examples would be doctor bills, utility bills, and hospital bills. |
| Voluntary Bankruptcy | A bankruptcy proceeding initiated by the debtor. |
| Title 11 U.S.C. | The United States Code applying to bankruptcy. |
