Bankruptcy Chapter 5 Flashcards

Bankruptcy Terminology

• Abandoned Property: Property the trustee opts not to manage, leaving it outside the administration process.

• Administrative Expenses: Essential costs incurred to present and manage the bankruptcy estate.

• Adversary Proceeding: A lawsuit initiated in bankruptcy through the filing of a complaint, governed by Federal Rules of Bankruptcy Procedure (Fed.R.Bank P. 7001).

• Avoidance Powers: Trustees and debtors can annul certain transfers or obligations made by the debtor prior to bankruptcy.

• Bankruptcy Petition Preparer: An individual, not an attorney, who prepares bankruptcy documents for a fee, as defined under 11 U.S.C.A. sec. 110(a)(1).

• Codebtor: An individual who shares liability on a consumer debt with the debtor, regardless of their status in the bankruptcy case.

• Community Property State: States where marital property is equally owned by both spouses, acquired during the marriage.

• Contested Matter: A bankruptcy dispute resolved through a motion process, distinct from adversary proceedings, as defined by Fed.R.Bank.P. 9014.

• Contingent Claim: A claim reliant on the occurrence of a future, uncertain event.

• Creditor Holding a Secured Claim: An individual or entity with a security interest allowing repossession rights upon debtor default.

• Current Monthly Expenditures: The average monthly spending of an individual debtor and family, calculated over the six months leading to the bankruptcy case.

• Current Monthly Income: Average monthly income of the individual debtor (and spouse in joint cases) from the six months before filing, used for means testing.

• Disputed Claim: A claim whose validity or amount is challenged.

• Domestic Support Obligation: Debts owed for alimony, maintenance, or child support, even if assigned to a governmental entity.

• Executory Contract: A contract where not all performance obligations have been fulfilled by either party.

• Exempt Property: Assets protected from creditors, allowing the debtor to retain certain property during bankruptcy.

• Interim Trustee: A trustee appointed by the U.S. trustee in Chapter 7 cases who remains unless replaced at the creditors' meeting.

• Joint Case: A bankruptcy petition filed by both spouses.

• List of Creditors: A mandatory document detailing creditors involved in the bankruptcy, filed under Fed.R.Bank.P. 1007(a).

• Meeting of Creditors: A court meeting for creditors to interrogate the debtor under oath regarding the bankruptcy estate and potential discharge.

• Meeting of Equity Security Holders: A gathering for equity security holders to discuss their rights and enforcement methods.

• Order for Relief: A legal remedy granted to a debtor upon filing a voluntary petition or by court approval of an involuntary petition.

• Property of the Estate: All legal and equitable interests in the debtor's property that constitute the bankruptcy estate post-filing, as detailed in 11 U.S.C.A.sec. 545.

• Reaffirmation Agreement: A formal agreement filed to maintain a before-bankruptcy debt post-discharge, ensuring the debt survives the bankruptcy process.

• Setoff: The ability to offset one claim against another without an exchange being involved.