COPYRIGHTED MATERIAL
What Does That Mean?
TERM
DEFINITION
automatic stay
an immediate suspension of any action by a creditor against the debtor including foreclosure, repossession, and eviction upon filing a bankruptcy case. a legal proceeding during which a debtor’s assets are liquidated, or business and finances are reorganized to repay creditors. the federal law that establishes bankruptcy and regulates how bankruptcies are handled. “BAPCPA”; a law making it harder for consumer debtors to qualify for bankruptcy and requiring that they undergo credit counseling.
Bankruptcy
Bankruptcy Code
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
Chapter 7 a court-supervised liquidation (sale) of a debtor’s assets and distribution of sales proceeds to creditors. a court-supervised reorganization of an operating business to facilitate repayment of creditors and discharge of the business’s liability for some debts. PRODUCT PREVIEW Chapter 13 a court-supervised reorganization of debts by a person with regular income allowing a discharge of liability for some debts. debt management plan DMP; an agreement by a debtor to make monthly payments to a counseling agency that pays creditors on the debtor’s behalf in exchange for a reduction of the debt. discharge elimination of legal liability for a debt. dischargeable debt a class of debt that can be wiped out in a bankruptcy. exempt property property of a debtor which the law protects from the claims of creditors. insolvency a state of being unable to pay debts or meet financial obligations. liquidation in bankruptcy, a mandatory sale of assets to pay debts. non-dischargeable debt a class of debt that cannot be wiped out in a bankruptcy. non-exempt property property of a debtor which may be liquidated by the bankruptcy trustee to pay the claims of creditors. Proof of Claim a bankruptcy form that must be filed by a creditor indicating the amount of the debt owed to them by the debtor. secured claim claim of a creditor that is based on a debt secured by property that has been pledged for the debt, such as a debt secured by a mortgage. unsecured claim a claim of a creditor that is not based on a debt secured by collateral. United States Trustee representative of the U.S. Department of Justice responsible for overseeing the administration of bankruptcy cases. Chapter 11
Access vocab ashcards at www.c21publishing.com
Chapter 18 | Resolving Insolvency 352
Made with FlippingBook - Online catalogs