| GLOSSARY
OF TERMS - PAGE 2
Bankruptcy estate —
All assets, whether real or personal, belonging to the bankrupt
debtor at the time the petition is filed. (Co-debtors or spouses
income or property may be part of the bankruptcy estate.)
Bar date — Last date
for a creditor to timely file a Complaint to Determine
Dischargeability of a debt. For non-governmental creditors, that
date is 90 days after the first date set for the meeting of
creditors (341 meeting). Governmental units such as the IRS have
180 days from the date the petition was filed to file a claim.
Chapter 7 — The
chapter of the Bankruptcy Code which sets forth the provisions
relating to liquidation of a debtor’s assets. In a Chapter 7
filing, a trustee is appointed to collect and liquidate non-exempt
assets and distribute the proceeds to creditors in accordance with
set priorities.
Chapter 9 — This
chapter is a reorganization of debts but exclusively available to
municipalities and public agencies.
Chapter 11 — This
chapter is a reorganization chapter where a debtor seeks to
rehabilitate and reorganize its financial structure. This plan is
normally used by
businesses but can be filed by an individual debtor.
Chapter 12 — This
chapter was developed for family farmers exclusively. This chapter
seeks to reorganize and rehabilitate the financial structure of
the debtor. Normally it allows a debtor to propose a plan to pay
creditors.
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