Bankruptcy Terminology E - L
The value of a debtor's interest in property that remains after liens and
other creditors' interests are considered. (Example: If a house valued at
$60,000 is subject to a $30,000 mortgage, there is $30,000 of equity.)
EXECUTORY CONTRACT OR LEASE
Generally includes contracts or leases under which both parties to the
agreement have duties remaining to be performed. (If a contract or lease
is executory, a debtor may assume it or reject it.)
A description of any property that a debtor may prevent creditors from
Property that the Bankruptcy Code or applicable state law permits a debtor
to keep from creditors.
Property or value in property that a debtor is allowed to retain, free
from the claims of creditors who do not have liens.
FACE SHEET FILING
A bankruptcy case filed either without schedules or with incomplete
schedules listing few creditors and debts. (Face sheet filings are often
made for the purpose of delaying an eviction or foreclosure.)
An individual, individual and spouse, corporation, or partnership engaged
in a farming operation who meet certain debt limits and other statutory
criteria for filing a petition under chapter 12.
A transfer of a debtor's property made with intent to defraud or for which
the debtor receives less than the transferred property's value.
The characterization of a debtor's status after bankruptcy, i.e., free of
most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy
INSIDER (of individual debtor)
Any relative of the debtor or of a general partner of the debtor;
partnership in which the debtor is a general partner; general partner of
the debtor; or corporation of which the debtor is a director, officer, or
person in control.
INSIDER (of corporate debtor)
A director, officer, or person in control of the debtor; a partnership in
which the debtor is a general partner; a general partner of the debtor; or
a relative of a general partner, director, officer, or per- son in control
of the debtor.
A court-approved mechanism under which two or more cases can be
administered together. (Assuming no conflicts of interest, these separate
firms or individuals can pool their resources, hire the same
One bankruptcy petition filed by a husband and wife together.
A charge upon specific property design- ed to secure payment of a debt or
performance of an obligation.
A sale of a debtor's property with the proceeds to be used for the benefit
A creditor's claim for a fixed amount of money.