Bankruptcy Terminology C - D
The chapter of the Bankruptcy Code providing for "liquidation,"
i.e., the sale of a debtor's nonexempt property and the distribution of
the proceeds to creditors.
CHAPTER 7 TRUSTEE
A person appointed in a chapter 7 case to represent the interests of the
bankruptcy estate and the unsecured creditors. (The trustee's
responsibilities include reviewing the debtor's petition and schedules,
liquidating the property of the estate, and making distributions to
creditors. The trustee may also bring actions against creditors or the
debtor to recover property of the bankruptcy estate.)
A reorganization bankruptcy, usually involving a corporation or
partnership. (A chapter 11 debtor usually proposes a plan of
reorganization to keep its business alive and pay creditors over time.
People in business or individuals can also seek relief in chapter 11.)
The chapter of the Bankruptcy Code providing for adjustment of debts of a
"family farmer," as that term is defined in the Bankruptcy Code.
The chapter of the Bankruptcy Code providing for adjustment of debts of an
individual with regular income. (Chapter 13 allows a debtor to keep
property and pay debts over time, usually three to five years.)
CHAPTER 13 TRUSTEE
A person appointed to administer a chapter 13 case. (A chapter 13
trustee's responsibilities are similar to those of a chapter 7 trustee;
however, a chapter 13 trustee has the additional responsibilities of
overseeing the debtor's plan, receiving payments from debtors, and
disbursing plan payments to creditors.)
A creditor's assertion of a right to payment from a debtor or the debtor's
The first or initiatory document in a lawsuit that notifies the court and
the defendant of the grounds claimed by the plaintiff for an award of
money or other relief against the defendant.
Approval of a plan of reorganization by a bankruptcy judge.
A bankruptcy case filed to reduce or eliminate debts that are primarily
Debts incurred for personal, as opposed to business, needs.
A claim that may be owed by the debtor under certain circumstances, for
example, where the debtor is a cosigner on another person's loan and that
person fails to pay.
A person to whom or business to which the debtor owes money or that claims
to be owed money by the debtor.
A person who has filed a petition for relief under the bankruptcy laws.
An individual (or business) against whom a lawsuit is filed.
A release of a debtor from personal liability for certain dischargeable
debts. (A discharge releases a debtor from personal liability for certain
debts known as dischargeable debts (defined below) and prevents the
creditors owed those debts from taking any action against the debtor or
the debtor's property to collect the debts. The discharge also prohibits
creditors from communicating with the debtor regarding the debt, including
telephone calls, letters, and personal contact.)
A debt for which the Bankruptcy Code allows the debtor's personal
liability to be eliminated.
A written document prepared by the chapter 11 debtor or other plan
proponent that is designed to provide "adequate information" to
creditors to enable them to evaluate the chapter 11 plan of