Source: http://tilemlaw.com/Bankruptcy-Dictionary.shtml
Timestamp: 2019-03-20 12:40:45
Document Index: 74337709

Matched Legal Cases: ['§101', '§101', '§102', '§101', '§101', '§362', '§101', '§541', '§1115', '§1207', '§1306', '§704', '§1106', '§109', '§1202', '§109', '§1202', '§101', '§102', '§101', '§760', '§770', '§125', '§297', '§7', '§101', '§101', '§101', '§109', '§727', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§548', '§101', '§101', '§101', '§102', '§101', '§101', '§101', '§101', '§303', '§302', '§101', '§101', '§101', '§341', '§101', '§523', '§102', '§101', '§101', '§101', '§101', '§101', '§547', '§101', '§101', '§524', '§101', '§362', '§101', '§101', '§101', '§101', '§101', '§101', '§101', '§101']

California Bankruptcy Dictionary | Debt Relief Information Attorney
Someone authorized to practice public accounting. This may include a professional association, corporation, or partnership. See Bankruptcy Code §101(1)
One of several types of legal proceedings in which the Bankruptcy Court resolves disputes. The others are Motion, Contested Matter and Application. This is the most formal, expensive and time consuming way to resolve disputes. Adversary Actions are reserved for the most serious of issues to be decided by the Court such as whether a debt is dischargeable or whether the debtor gets a discharge. Adversary Actions are started when someone files a formal Complaint.
People or companies which are closely related where one controls the other. For corporations, "control" is defined as 20% of the voting stock. Control can be legal or practical. See Bankruptcy Code §101(2)
Gives the Bankruptcy Judge flexibility to do things quickly. Many times a motion or application can be resolved by the Judge without an actual hearing if a notice is given and no one objects or requests a hearing within the allowed time. This "no objection" process is sometimes also called "scream or die". See Bankruptcy Code §102.
One of several types of legal proceedings in which the Bankruptcy Court resolves disputes. The others are Motion, Contested Matter and Adversary Action. This is the least formal, least expensive and quickest way to resolve disputes. Applications are usually reserved for housekeeping or procedural matters.
Someone with "primarily" consumer debt and who has property which is not exempt property worth less than $150,000. We think "primarily" means more than 50%, but this legal issue remains undecided. We think property to be counted includes property which is subject to a loan, like a mortgage, but this legal issue also remains undecided. Anyone who owns a house in California (where values are very high) is probably NOT an assisted person. See Bankruptcy Code §101 (3)
Someone authorized to practice law. This may include a professional association, corporation, or partnership and may, in certain cases, include someone training to become a lawyer. See Bankruptcy Code §101(4)
A law which prevents creditors from taking any more steps to collect their debts. This protection begins immediately when the bankruptcy case is filed. The automatic stay is temporary. It temporarily protects the debtor, property of the estate, and the debtor's property. See also relief from stay. See Bankruptcy Code §362
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Goods or services sold or provided to an assisted person which give information, advice or counsel about bankruptcy, or which help an assisted person prepare or file documents to be used in a bankruptcy case, or which consist of representing or appearing on behalf of someone in Bankruptcy Court. See Bankruptcy Code §101(4A)
Bankruptcy Estate - Chapter 7
All interests held by the debtor in property when the case is filed. All interests held by the debtor's spouse in community property when the case is filed. All interests in property which a trustee recovers in litigation after the case is filed. All interests in property which the debtor gets within 180 days after the case is filed through inheritance, divorce or life insurance. The bankruptcy estate in Chapter 7 does not include money earned by the debtor for work done after the bankruptcy case is filed or property held in government approved retirement accounts. Remember that this definition is general in nature. The technical definition of what is in a Chapter 7 bankruptcy estate is very complicated and often leads to litigation. See Bankruptcy Code §541
Bankruptcy Estate - Chapter 11
Start with the definition of Bankruptcy Estate - Chapter 7 and add all of the property which the debtor acquires AFTER the case is filed (including money earned by the debtor for work done after the bankruptcy case is filed). Remember that this definition is general in nature. The technical definition of what is in a Chapter 11 bankruptcy estate is very complicated and often leads to litigation. See Bankruptcy Code §1115
Bankruptcy Estate - Chapter 12
Start with the definition of Bankruptcy Estate - Chapter 7 and add all of the property which the debtor acquires AFTER the case is filed (including money earned by the debtor for work done after the bankruptcy case is filed). Remember that this definition is general in nature. The technical definition of what is in a Chapter 12 bankruptcy estate is very complicated and often leads to litigation. See Bankruptcy Code §1207
Bankruptcy Estate - Chapter 13
Start with the definition of Bankruptcy Estate - Chapter 7 and add all of the property which the debtor acquires AFTER the case is filed (including money earned by the debtor for work done after the bankruptcy case is filed). Remember that this definition is general in nature. The technical definition of what is in a Chapter 13 bankruptcy estate is very complicated and often leads to litigation. See Bankruptcy Code §1306
One of about 50 people, usually an attorney or accountant, assigned by the United States Trustee to represent the interests of creditors in a Chapter 7 case. A Chapter 7 Trustee takes control over the Chapter 7 Estate. The Chapter 7 Trustee is responsible for many things including collecting property and money which is not exempt property, recovering property which has been improperly transferred by the debtor, making sure the debtor complies with all duties in Chapter 7 case, investigating the debtor's financial affairs, making sure that claims are legitimate, opposing the debtor's right to receive a discharge when appropriate, and closing the case as quickly and efficiently as possible. See Bankruptcy Code §704
A private panel trustee, usually an attorney or accountant, assigned by the United States Trustee to represent the interests of creditors in a Chapter 11 case. A Chapter 11 Trustee takes control over the Bankruptcy Estate. The Chapter 11 Trustee is responsible for many (but not all) of the same things as a Chapter 7 Trustee and more. See Bankruptcy Code §1106
A type of bankruptcy case in which a family farmer or family fisherman with regular annual income can try to reorganize and pay back some or all of their debts under a plan. During this process, the debtor remains in control of the Bankruptcy Estate and makes payments to the Chapter 12 Trustee while trying to stay in business. Chapter 12 plans do provide for a discharge of some (but not all) types of debts. For a more complete description of Chapter 12 and examples of debts not discharged in Chapter 12, see the Summary of Chapter 12. Only certain types of people can be a debtor under Chapter 12 See Bankruptcy Code §109(f)
One of about 5 people assigned by the United States Trustee to handle Chapter 12 cases. By comparison with a Chapter 7 Trustee or a Chapter 11 Trustee, a Chapter 12 Trustee has very limited duties. Their primary duties have to do with making sure that the Chapter 12 repayment plan meets the requirements of the Bankruptcy Code and that the debtor follows through by making the payments required under that plan. Payments under the plan are paid to the Chapter 12 Trustee who distributes them to creditors. See Bankruptcy Code §1202(b)
A type of bankruptcy case in which individuals with regular income can try to reorganize and pay back some or all of their debts under a plan. During this process, the debtor remains in control of the Bankruptcy Estate and makes payments to the Chapter 13 Trustee while trying to stay in business. Chapter 13 plans do provide for a discharge of some (but not all) types of debts. For a more complete description of Chapter 13 and examples of debts not discharged in Chapter 13, see the Summary of Chapter 13. Only certain types of people can be a debtor under Chapter 13 See Bankruptcy Code §109(e)
One of about 5 people assigned by the United States Trustee to handle Chapter 13 cases. By comparison with a Chapter 7 Trustee or a Chapter 11 Trustee, a Chapter 13 Trustee has very limited duties. Their primary duties have to do with making sure that the Chapter 13 repayment plan meets the requirements of the Bankruptcy Code and that the debtor follows through by making the payments required under that plan. Payments under the plan are paid to the Chapter 13 Trustee who distributes them to creditors. See Bankruptcy Code §1202(b)
This is an accounting term. It means that the creditor does not expect to collect on the debt. It relates to the creditor's taxes. It starts time periods under the Fair Credit Reporting Act. The debt can still be enforced.
A right to demand money (even if the right is not for a precise amount, or is disputed) or to demand some other remedy under the law if that other remedy can be reduced to a demand for money. See Bankruptcy Code §101(5). A claim against the debtor includes a claim against property belonging to the debtor. See Bankruptcy Code §102(2)
A pre-bankruptcy claim which State law says can be paid with community property even if there is no community property when the bankruptcy case is filed. See Bankruptcy Code §101(7)
Property defined by the law of each State. Not all States have community property. In California, it includes any property acquired by a person after marriage (and before separation or divorce) unless that property was acquired by inheritance, by gift, or from other non-community property (like rental income from a house acquired before marriage). See Calif.Family Code §760 and §770. This also includes property acquired by the spouses before they moved to California. See Calif.Family Code §125. Under California law, domestic partners (same gender couples and couples where at least one partner is entitled to receive social security old age benefits) can also have community property. See Calif.Family Code §297.5. Federal bankruptcy law does NOT recognize domestic partnerships. See Title 1, United States Code §7
Raising, catching or harvesting aquatic species or products of such species for market. See Bankruptcy Code §101(7A)
A vessel used by a family fisherman to carry out a commercial fishing operation. See Bankruptcy Code §101(7B)
Most settlements which resolve disputes before the Bankruptcy Court must be approved by the Bankruptcy Court. This usually takes about 30 days. Federal Rule of Bankruptcy Procedure 9019
The legal process of approving a debt repayment plan in Chapter 11, Chapter 12 or Chapter 13. After the plan is approved it is "confirmed".
A debt incurred by an individual primarily for a personal, family, or household purpose so business loans are not consumer debt. Taxes are not considered consumer debts. The Means Test only applies to debtors with primarily consumer debt. See Bankruptcy Code §101(8)
One of several types of legal proceedings in which the Bankruptcy Court resolves disputes. The others are Motion, Adversary Action and Application. This is a hybrid form of legal proceeding between a Motion and an Adversary Action. Contested Matters are started when someone files a Motion and someone else files a formal opposition. In these situations, the Court may require the participants to use the formal rules which apply to an Adversary Action, or may fashion some less formal rules to try to help resolve the dispute quickly and efficiently. See Federal Rule of Bankruptcy Procedure 9014
Since the bankruptcy laws were changed in October 2005, all people who file bankruptcy must take two classes. The first is called a "Briefing". See Bankruptcy Code §109(h). The briefing can be received in person, over the phone or over the internet. It usually lasts about 60 minutes. The Briefing MUST BE COMPLETED before a bankruptcy case can be filed. The second is called a Financial Management Course which must be completed before a debtor receives a discharge. The Financial Management Course takes several hours. See Bankruptcy Code §727(a)(11)
A record of financial transactions maintained by a private company. These records are sold to potential creditors to help them make credit decisions. The major credit reporting companies are TransUnion, Experian and Equifax
Someone with a claim against the debtor, or a mortgage or lien against property owned by the debtor that arose before the order for relief in a bankruptcy case is filed. This includes a community claim. See Bankruptcy Code §101(10)
Sometimes referred to as CMI. The average monthly "income" (taxable or non-taxable) from all sources that the debtor (and the debtor's spouse in a joint case) received during the 6-month period ending the month before a bankruptcy case is filed. CMI includes any amount paid by someone else on a "regular basis" for household expenses, but excludes Social Security Act benefits, war crimes victim payments, crimes against humanity victim payments and international or domestic terrorism victim payments. The legal definitions of "income" and "regular basis" remains undecided. See Bankruptcy Code §101(10A)
Money which is owed or which may be owed. See Bankruptcy Code §101(12)
Sometimes referred to as DRA. Any person who provides bankruptcy assistance to an assisted person for money or gain unless: (A) that person is an employee of someone else who provides bankruptcy assistance; (B) that person is a nonprofit organization exempt from taxation; (C) a creditor; (D) a bank, credit union, or their affiliates; or (E) an author, publisher, distributor, or seller of works subject to copyright protection under title 17, when acting in such capacity. See Bankruptcy Code §101(12A)
Person who is the subject of a bankruptcy case. See Bankruptcy Code §101(13)
Sometimes referred to as DSO. A debt established (or which may be established) by a Court for child support, spousal support, family support, alimony or maintenance which is owed to or recoverable by a spouse, former spouse, child or a child's parent, legal guardian, or responsible relative. To be a DSO, the debt does not need to be labeled as a support debt as long as it serves a support function. See Bankruptcy Code §101(14A)
Includes person, probate estate, trust, governmental unit, and United States trustee. See Bankruptcy Code §101(15)
This is a very complicated, multi-part definition which qualifies someone to be a debtor in a Chapter 12 case. First, they have to be engaged in a farming operation. Second, the total debt cannot exceed a specified amount which is adjusted from time to time. Third, after deducing any debt secured by the principal residence, more than half of the total debt has to arise out of the farming operation. Fourth, more than half of the income must be related to the farming operation over the last year or several years. See Bankruptcy Code §101(18)
A family farmer whose annual income is sufficiently stable and regular to enable the family farmer to make payments under a Chapter 12 plan. See Bankruptcy Code §101(19)
This is a very complicated, multi-part definition which qualifies someone to be a debtor in a Chapter 12 case. First, they have to be engaged in a commercial fishing operation. Second, the total debt cannot exceed a specified amount which is adjusted from time to time. Third, after deducing any debt secured by the principal residence, more than 80% of the total debt has to arise out of the commercial fishing operation. Fourth, more than half of the income must be related to the commercial fishing operation over the last year or several years. See Bankruptcy Code §101(19A)
A family fisherman whose annual income is sufficiently stable and regular to enable the family fisherman to make payments under a Chapter 12 plan. See Bankruptcy Code §101(19B)
Person that received more than 80% of gross income from a farming operation during the tax year immediately before the year in which the bankruptcy case is filed from a farming operation owned or operated by that person. See Bankruptcy Code §101(20)
Includes farming, tillage of the soil, dairy farming, ranching, production or raising of crops, poultry, or livestock, and production of poultry or livestock products in an unmanufactured state. See Bankruptcy Code §101(21)
A transfer is fraudulent if: (1) the transfer was made with the intent to hinder, delay or defraud a creditors; or (2) if the item is transferred for less than its real value which makes the debtor either insolvent or unable to pay anticipated debts. See Bankruptcy Code §548
The United States of America, any State, Commonwealth, District, Territory, City, department, instrumentality of the United States, a foreign government or any sub-division of a foreign or domestic government. See Bankruptcy Code §101(27)
Any public or private entity (for profit or not for profit) that is primarily engaged in offering medical services or facilities to the general public. This includes psychiatric care, hospice care, home health agency care, long term care, skilled nursing care, assisted living care, home for the aged, and any institution primarily engaged in offering room, board, laundry, or personal assistance with activities of daily living and incidentals to activities of daily living. See Bankruptcy Code §101(27A)
When related to a debtor's principal residence means items commonly included in any sale of the principal residence in the area where the real property is located. This includes easements, rights, appurtenances, fixtures, rents, royalties, mineral rights, oil or gas rights or profits, water rights, escrow funds, or insurance proceeds; and all replacements or additions. See Bankruptcy Code §101(27B)
Means including, but not limited to. See Bankruptcy Code §102(3)
Individual whose income is sufficiently stable and regular to enable that individual to make payments under a Chapter 13 plan. See Bankruptcy Code §101(30)
A term which is the subject of much litigation. Generally it means someone close to the debtor who knows enough about the debtor's true financial condition to take advantage of it. Examples of insiders for individuals: relatives, partners and partnerships in which the debtor is a partner, affiliates, and corporations in which the debtor is an officer, director or person in control. Examples of insiders for corporations: directors, officers, or persons in control, partners, partnerships in which the corporation is a general partner, affiliates and any of their relatives. Examples of insiders for partnerships: general partners, persons in control, related partners, affiliates and any of their relatives. See Bankruptcy Code §101(31)
When debts are greater than the fair value of assets. The assets to be considered do not include exempt property and property which has been transferred, concealed, or removed. For partnership debtors, assets must include any value in the property of the individual partners over the amount of any debts of the individual partners. See Bankruptcy Code §101(32)
Includes patents and patent applications, copyrights, trade marks, trade secrets, plant varieties, mask works. See Bankruptcy Code §101(35A)
In some situations, creditors or general partners of a partnership can force someone into a Chapter 7 or Chapter 11 bankruptcy case. See Bankruptcy Code §303
A bankruptcy case which can only be filed voluntarily by a married couple. See Bankruptcy Code §302
A lien obtained through an act or decision by a Judge in a legal or equitable process or proceeding such as a judgment, levy or sequestration. See Bankruptcy Code §101(36)
An interest in, or charge against one or more specifically identified assets such that the assets are held hostage to make sure that a debt is paid or some obligation is met. Liens create a security interest. The asset involved is called collateral. Some liens are voluntary, such as a mortgage because the debtor has agreed to create them. Others are involuntary such as judicial liens, statutory liens and tax liens. See Bankruptcy Code §101(37). For more information, see Is This Debt Secured?
A process used in consumer bankruptcy cases 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." For more, see Lien Avoidance and Lien Stripping.
The median family income both calculated and reported by the Census Bureau. If this is not reported, then use the most recently reported number and adjust it according to changes in the Consumer Price Index for All Urban Consumers. See Bankruptcy Code §101(39A)
A meeting which must be attended by every debtor (unless excused for medical hardship) where the debtor is sworn to tell the truth and asked questions about his or her financial affairs. Creditors are allowed to attend and ask questions, but they rarely do. In most consumer bankruptcy cases, the meeting of creditors is very short (only a few minutes), but they can be very long and last for several sessions in more complicated consumer and business bankruptcy cases. The Bankruptcy Judge is not allowed to go to the meeting of creditors so the person in charge and asking most of the questions is the trustee assigned to the case or someone appointed by the trustee assigned to the case. See Bankruptcy Code §341(a)
Political subdivision or public agency or instrumentality of a State. See Bankruptcy Code §101(40)
A debt which is not eliminated in a bankruptcy case and which can continue to be enforced after the bankruptcy case is over. The list of non-dischargeable debts is different for Chapter 7, Chapter 11, Chapter 12 and Chapter 13. The most general list is found at Bankruptcy Code §523(a). For a more complete discussion on this subject see About Dischargeable Debts.
Means "and/or". See Bankruptcy Code §102(5)
Any individual who obtains or receives services from a health care business. See Bankruptcy Code §101(40A)
Any written document relating to a patient or a record recorded in a magnetic, optical, or other form of electronic medium. See Bankruptcy Code §101(40B)
A legal process which applies only to a secured debt which gives public knowledge about the secured debt. Perfection is important to help determine which lien gets paid first, second and third if the collateral is liquidated (sold). Mortgages and debts secured by land and buildings are perfected when the legal documents involved are given to the County Recorder's office for recording in the title records. Other liens are perfected when a legal notice is given to the Secretary of State's office for recording. In California, most liens on cars are perfected by giving the notice to the DMV for recording. A lien does not need to be perfected to be enforceable between the original lender and the original borrower. There are many other rules and this is an advanced subject which you should discuss with the attorney if it applies to your situation.
Individual, partnership, and corporation, but does not include, in most situations, governmental unit. See Bankruptcy Code §101(41)
Information about people other than the debtor which includes name, residence address, email address, home telephone number, social security number, any credit card account number, date of birth, place of birth, other similar contact or identification information. See Bankruptcy Code §101(41A)
The first paper filed with the Bankruptcy Court which starts a bankruptcy case. Filing the petition starts the automatic stay. If the petition was filed voluntarily by the debtor, it also constitutes the order for relief. Most events in a bankruptcy case are measured with reference to the petition filing date as either pre-petition or post-petition. See Bankruptcy Code §101(42)
Refers to events which occur after the bankruptcy case is filed.
A transfer to a creditor in partial or full payment of an existing debt made within certain time periods before the commencement of the bankruptcy case. Trustees and debtors-in-possession can file avoidance actions to undo the transfer so that whatever was transferred to one creditor can be shared among all creditors. See Bankruptcy Code §547
Refers to events which occurred before the bankruptcy case is filed.
A residential structure which may include a condominium, cooperative unit, mobile or manufactured home or trailer, including any incidental property. See Bankruptcy Code §101(13A)
A document filed by a creditor with the Bankruptcy Court to formally state its claim in the bankruptcy case.
Transferee of a voluntary transfer, and includes immediate or mediate transferee of such a transferee. See Bankruptcy Code §101(43)
Legal process where a debtor agrees to continue being responsible for a debt which would otherwise be discharged by the bankruptcy. Generally, when a debt is reaffirmed, the parties to the reaffirmed debt have the same rights and liabilities that each had prior to the bankruptcy filing: the debtor is obligated to pay and the creditor can sue or repossess if the debtor doesn't pay. See Bankruptcy Code §524(c). More about Reaffirmation and Alternatives.
Individual related by affinity (marriage or adoption) or consanguinity (blood) within 3 degrees. This usually includes parents, grandparents and great-grandparents, children, grandchildren and great-grandchildren, siblings, spouses of siblings, nieces, nephews, uncles, aunts, parents-in-law and others. See Bankruptcy Code §101(45)
The process of asking the Bankruptcy Court for permission to do something which would otherwise be prohibited by the automatic stay. Usually this request is made by a creditor, but there are occasions when debtors will make the same request. This process usually takes about 30 days but can happen in one day if there is a real emergency. In consumer bankruptcy cases, creditors are usually asking the Bankruptcy Court for permission to continue a foreclosure against land or buildings or to repossess a car. See Bankruptcy Code §362(d)
A type of deposition which must be approved in advance by the Bankruptcy Court. This type of deposition cannot be used when the parties are involved in an adversary action or a contested matter. See Federal Rule of Bankruptcy Procedure 2004
Lists of information which every debtor must file with the Court. Schedule A is for land and buildings. Schedule B is for all other property and assets. Schedule C is to identify exempt property. Schedule D is for secured debts. Schedule E is for priority debts. Schedule F is for unsecured debts. Schedule G is for leases and executory contracts. Schedule H is for listing other people who are also responsible with you for your debts. Schedule I is for disclosing your average monthly income. Schedule J is for disclosing your average monthly expenses. If these lists are not filed within 15 days after the case is filed, the case will be dismissed by the Court.
Case filed under Chapter 11 in which the debtor is a small business debtor and the United States Trustee has not appointed a Creditor Committee. See Bankruptcy Code §101(51C). See also Bankruptcy Code §101(51D)
Person engaged in commercial or business activities that has $2 million or less in noncontingent and liquidated existing debt on the date of the order for relief which is not owed to an affiliate or insider. See Bankruptcy Code §101(51D)
Includes the District of Columbia and Puerto Rico. See Bankruptcy Code §101(52)
Any lien arising solely due to a law on specific circumstances or conditions, or a lien for non-payment of rent, whether or not based on a law. Does not include security interest or judicial lien. See Bankruptcy Code §101(53)
The interest purchased in a timeshare plan. See Bankruptcy Code §101(53D)
Any purchased right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time which is less than full time and which extends for a period of more than three years. See Bankruptcy Code §101(53D)
The creation of a lien; the retention of title as a security interest, the foreclosure of a debtor's equity of redemption (not applicable in California), or any method, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or any interest in property. See Bankruptcy Code §101(54)
Also referred to as the Office of the United States Trustee, OUST, or USTE. Part of the United States Department of Justice which supervises the administration of bankruptcy cases. There are different regions around the Country. Los Angeles is in Region 16. As reported on their website, the United States Trustee seeks to promote the efficiency and protect the integrity of the Federal bankruptcy system. To further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code, the Program monitors the conduct of bankruptcy parties and private estate trustees, oversees related administrative functions, and acts to ensure compliance with applicable laws and procedures. It also identifies and helps investigate bankruptcy fraud and abuse in coordination with the United States Attorneys, the Federal Bureau of Investigation and other law enforcement agencies. The Region 16 website.