party who owes money to another
debtor
party to whom money is owed
creditor
prevents creditors from taking any collection action such as repossessions of cars and foreclosures on houses
automatic stay
the court may require the debtor to make certain payments to its secured creditors in an attempt to protect the creditor’s interest while the creditor is subject to the automatic stay
adequate protection doctrine
A car lender may receive payments in order to protect it from loss in value due to depreciation of the car between the time a bankruptcy is filed and the time a plan that provides for payment to the car lender is confirmed. These payments are called…
adequate protection payments
The debtor’s property is referred to by the court as the bankruptcy
estate
The court will appoint a [blank] to administer the bankruptcy estate
trustee
The document submitted by the creditors to verify their claim is called a
proof of claim
Certain property of the debtor cannot be used to pay creditors and is referred to as
exempt property
payments of cash or a transfer of assets in payment
of a preexisting debt that favor one creditor over another by providing the creditor more than they would have received under the Bankruptcy Code
Preferential transfers
A payment of cash or transfer of assets made within two years of the filing of the petition for less than adequate consideration is presumed to be a
fraudulent transfer
a debt for which the creditor did not obtain a security interest
unsecured debt
The creditor that does not have a security interest is referred to as an
unsecured creditor
Some unsecured creditors are given priority over other unsecured creditors under bankruptcy law, and these creditors are often referred to as
priority unsecured creditors
where in addition to suing on the borrower’s promise to pay, in the event of default, the lender can also take possession of specified collateral because the creditor has a security interest in those assets
secured debt
the assets that a creditor holds a security interest in are called
collateral
A creditor that has a security interest is referred to as a
secured creditor
involves the complete liquidation of all the debtor’s nonexempt assets
Chapter 7 bankruptcy
the process for a Chapter 7 bankruptcy begins with
filing of a petition
a bankruptcy petition filed by an individual or business at their own option
voluntary petition
filed by creditors who are concerned the debtor may incur more debt and lose more assets if legal action is not taken to protect the debtor’s assets
Involuntary petitions
the process by which the debtor agrees to the non-discharge of debts that would normally be dischargeable
Reaffirmation
designed to allow debtors the opportunity to reorganize their debts instead of liquidating their assets
Chapter 11 Bankruptcy
A debtor who is operating under a Chapter 11 plan is called a [blank] and continues to operate the business
debtor-in-possession
