a sale held pursuant to 11 U.S.C. §363(f). Such a sale seeks court approval to sell liened property over the objection of any lienholder.
Documents that the debtor must file detailing the assets and liabilities to commence a bankruptcy case.
a fundamental bankruptcy pleading consisting of a prioritized and itemized list of a debtor's assets (property) and liabilities (debt).
a creditor with collateral that may satisfy part or all of the creditor's allowed claim.
A secured debt is one where the creditor takes personal or real property as collateral. A creditor whose debt is secured has a right to take property to satisfy a debt in default.
commercial documents used to evidence an ownership interest in any entity, among other things. Section 101(43) of the Bankruptcy Code defines security.
an agreement creating a security interest. A security interest is a consensual lien created by agreement. Section 101(44) of the Bankruptcy Code defines security agreement.
the pursuit of a remedy without court proceedings, such as a lien- holder's seizure of collateral upon default without court authority. Self-help seizure and foreclosure are permitted only in connection with certain liens and are subject to restrictions even when allowed.
A federal judge who, after attaining the requisite age and length of judicial experience, takes senior status, thus creating a vacancy among a court's active judges. A senior judge retains the judicial office and may cut back his or her workload by as much as 75 percent, but many opt to keep a larger caseload.
an equitable remedy, similar to attachment, under which the plaintiff may remove property from the defendant's control pending the final resolution of a case. Sequestration is usually available only when the defendant's property interest is equitable in nature and cannot be reached by attachment.
a debtor who files a second (or third) bankruptcy proceeding after dismissal of one or more prior proceedings.
Parties to a lawsuit resolve their dispute without having a trial. Settlements often involve the payment of compensation by one party in at least partial satisfaction of the other party's claims, but usually do not include the admission of fault.
the common law right of a creditor to balance mutual debts with a debtor.
real property which generates substantially all the gross income of a debtor and on which no substantial business is conducted other than operation of the property and activities thereto and which has less than $4 million of secured debt and does not include residential real property with three or fewer units. Single asset real estate is the subject of Bankruptcy Code Section 101(51B).
a Chapter 11 debtor with liquidated debts not in excess of $2 million who elects treatment as a small business debtor, excluding a debtor whose primary activity is owning and operating real estate. Small business debtors are the subject of Bankruptcy Code Section 101(51C).
an estate capable of paying all claims in full and returning assets to the debtor.
a trust containing a clause precluding invasion of the trust assets to satisfy the debts of a beneficiary.
individual joint debtors claiming state and federal exemptions.
Degree of proof required. In criminal cases, prosecutors must prove a defendant's guilt "beyond a reasonable doubt." The majority of civil lawsuits require proof "by a preponderance of the evidence" (50 percent plus), but in some the standard is higher and requires "clear and convincing" proof.
a fundamental bankruptcy pleading consisting of a question- aire concerning a debtor's financial affairs.
a notice to be given, within 30 days after a filing, to the holders of collateral security the repayment of consumer debt. The debtor must advise any affected creditor of the debtor's intention regarding the collateral. The debtor may reaffirm the contact, redeem or return the collateral, or avoid the lien under specific defined circumstances.
common name of the Statement of Financial Affairs and Schedules of Assets and Liabilities filed by any debtor within the bankruptcy system. These pleadings will be the most important initial pleadings in any bankruptcy proceeding.
a lien created by operation of law other than a court order. A state law mechanic's lien is a statutory lien. Section 101(47) of the Bankruptcy Code defines statutory lien.
a method of foreclosure under which the lienholder acquires owner- ship of the collateral in full satisfaction of the debt and is not required to conduct a foreclosure sale. The lienholder is therefore not account- able to the debtor for any value in the collateral in excess of the debt and may not claim any deficiency from the debtor if the collateral is worth less than the debt. Strict foreclosure is available only in connection with some liens, and is subject to restrictions, even where permitted.
the trustee's rights as a super-creditor, which are contained in the Bankruptcy Code Section 544.
Latin, meaning "of its own will." Often refers to a court taking an action in a case without being asked to do so by either side.
the regulation of a claim to a lesser status than it is otherwise entitled to under the Bankruptcy Code. A creditor may consent to sub- ordination or the court may order subordination for equitable reasons. Subordination is the subject of Section 510.
A command, issued under a court's authority, to a witness to appear and give testimony.
an abuse of the spirit and purpose of Chapter 7 by a consumer debtor that provides grounds for dismissal of the case under §707(b).
the taking of an irrevocable act in performance of a Chapter 11 plan, such as closing escrow or repaying a substantial portion of a dividend.
an exchange taking place in the normal course of business.
A decision made on the basis of statements and evidence presented for the record without a trial. It is used when it is not necessary to resolve any factual disputes in the case. Summary judgment is granted when — on the undisputed facts in the record — one party is entitled to judgment as a matter of law.
Special priority classifications given to two types of claim: (1) Priority at the top of the administrative expense category, granted by §507(b) to a claimant where adequate protection was attempted but proved to be insufficient to fully protect its interest; (2) An even more elevated priority position, senior to all administrative expenses (including superpriority claims under §507(b), granted to a post- petition financier under §364(c) as consideration for the extension of credit to the estate.
term of supervision served after a person is released from prison. The court imposes supervised release during sentencing in addition to the sentence of imprisonment. Unlike parole, supervised release does not replace a portion of the sentence of imprisonment but is in addition to the time spent in prison. U.S. probation officers supervise persons on supervised release.
Statutory proceedings in aid of execution, under which a judgment creditor may seek discovery of executable assets or take other steps to subject the debtor's executable property to the satisfaction of the judgment.
the amount in excess of the debt after collateral or property seized in execution has been realized. See deficiency; equity cushion.