Bankruptcy Terminology M - R
MOTION TO LIFT THE AUTOMATIC STAY
A request by a creditor to allow the creditor to take an action against a
debtor or the debtor's property that would otherwise be prohibited by the
A chapter 7 case where there are no assets available to satisfy any
portion of the creditors' unsecured claims.
A debt that cannot be eliminated in bankruptcy.
OBJECTION TO DISCHARGE
A trustee's or creditor's objection to the debtor's being released from
personal liability for certain dischargeable debts.
OBJECTION TO EXEMPTIONS
A trustee's or creditor's objection to a debtor's attempt to claim certain
property as exempt, i.e., not liable for any prepetition debt of the
PARTY IN INTEREST
A party who is actually and substantially interested in the subject
matter, as distinguished from one who has only a nominal on technical
interest in it.
A debtor's detailed description of how the debtor proposes to pay
creditors' claims over a fixed period of time.
A person or business that files a formal complaint with the court.
A transfer of a debtor's property made after the commencement of the case.
The arrangement (or rearrangement) of a debtor's property to allow the
debtor to take maximum advantage of exemptions. (Prebankruptcy planning
typically includes converting nonexempt assets into exempt assets.)
PREFERENTIAL DEBT PAYMENT
A debt payment made to a creditor in the 90-day period before a debtor
files bankruptcy (or within one year if the creditor was an insider) that
gives the creditor more than the creditor would receive in the debtor's
chapter 7 case.
The Bankruptcy Code's statutory ranking of unsecured claims that
determines the order in which unsecured claims will be paid if there is
not enough money to pay all unsecured claims in full.
An unsecured claim that is entitled to be paid ahead of other unsecured
claims that are not entitled to priority status. Priority refers to the
order in which these unsecured claims are to be paid.
PROOF OF CLAIM
A written statement describing the reason a debtor owes a creditor money.
(There is an official form for this purpose.)
PROPERTY OF THE ESTATE
All legal or equitable interests of the debtor in property as of the
commencement of the case.
An agreement by a chapter 7 debtor to continue paying a dischargeable debt
after the bankruptcy, usually for the purpose of keeping collateral or
mortgaged property that would otherwise be subject to repossession.