Bankruptcy has its own unique language and our New York & New Jersey bankrutpcy lawyers , understand that it can be confusing. Here is a easy to understand definition of those terms used in this site and in the Bankruptcy Code.
A lawsuit filed in the bankruptcy court by lawyers on behalf of the debtor or by the debtor him/herself which is related to the debtor's bankruptcy case. Examples are complaints to determine the dischargeability of a debt and complaints to determine the extent and validity of liens.
The injunction issued automatically upon the filing of a bankruptcy case, which prohibits certain collection actions against the debtor, the debtor's property, or the property of the estate.
The Bankruptcy Code permits the debtor to eliminate (avoid) some kinds of liens that interfere with (or impair) an exemption claimed in the bankruptcy. Most judgment liens that have attached to the debtor's home can be avoided if the total of the liens (mortgages, judgment liens and statutory liens) is greater than the value of the property in which the exemption is claimed. This is sometimes called "lien stripping."
Rights given to the bankruptcy trustee or the debtor-in-possession to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case.
Title 11 of the United States Code governs bankruptcy proceedings. Bankruptcy is a matter of federal law and is, with the exception of exemptions, the same in every state. When federal bankruptcy law conflicts with state law, federal law controls.
The estate is all of the legal and equitable interests of the debtor as of the commencement of the bankruptcy case. From the estate, an individual debtor can claim certain property exempt; the balance of the estate is liquidated in a Chapter-7 to pay the administrative costs of the proceeding and the claims of creditors according to their priority.
The most common form of bankruptcy. A Chapter 7 bankruptcy case is a liquidation proceeding available to individuals, married couples, partnerships and corporations.
A reorganization proceeding in which the debtor may continue in business or in possession of its property as a fiduciary. A confirmed Chapter-11 plan provides for the manner in which the claims of creditors will be paid in whole or in part by the debtor.
A simplified reorganization plan for family farmers whose debts fall within certain limits. Chapter 12 was not renewed when it expired this session of Congress.
Chapter 13 bankruptcy involves a repayment plan for individuals with debts falling below statutory levels which provides for repayment of some or all of the debts out of future income over 3 to 5 years.
The property, which is s
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