Chapter 22. Slang. Bankruptcy. A debtor, usu. a corporation, that files a second Chapter 11 petition shortly after a previous Chapter 11 petition has failed, because the debtor has become insolvent again or is again threatened with insolvency.
Chapter 7. 1. The chapter of the United States Bankruptcy Code allowing a trustee to collect and liquidate a debtor’s nonexempt property, either voluntarily or by court order, to satisfy creditors. [Cases: Bankruptcy 2251. C.J.S. Bankruptcy § 50.] 2. A bankruptcy case filed under this chapter. • An individual debtor who undergoes this type of
chapter-surfing. Slang. A debtor’s movement from a filing under one United States Bankruptcy Code chapter to a filing under another. [Cases: Bankruptcy 2235. C.J.S. Bankruptcy § 48.]
petition, n. 1. A formal written request presented to a court or other official body. certiorari petition. A petition seeking discretionary review from an appellate court. See CERTIORARI. debtor’s petition. See voluntary petition. involuntary petition. A petition filed in a bankruptcy court by a creditor seeking to declare a debtor bankrupt. • This type of
debtor-in-possession. Bankruptcy. A Chapter 11 or 12 debtor that continues to operate its business as a fiduciary to the bankruptcy estate. • With certain exceptions, the debtor-in-possession has all the rights, powers, and duties of a Chapter 11 trustee. — Abbr. DIP. [Cases: Bankruptcy 3622, 3672. C.J.S. Bankruptcy §§ 374, 417.]
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A petition filed in a bankruptcy court by a creditor seeking to declare a debtor bankrupt. • This type of petition may be filed only under Chapter 7 or Chapter 11 of the Bankruptcy Code. [Cases: Bankruptcy 2290. C.J.S. Bankruptcy § 57.]
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bankrupt, adj. Indebted beyond the means of payment; insolvent. — Also spelled (archaically) bankerout; bankrout. — bankrupt, vb. bankrupt, n. 1. A person who cannot meet current financial obligations; an insolvent person. • This term was used in bankruptcy statutes until 1979, and is still commonly used by nonbankruptcy courts. But the Bankruptcy Code uses
best interests of creditors. Bankruptcy. A test for confirmation of a reorganization plan whereby the court inquires into whether the plan ensures that the value of property to be distributed to each creditor is at least the amount that the creditor would receive if the debtor’s estate were liquidated in a Chapter 7 case. •
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liquidation, n. 1. The act of determining by agreement or by litigation the exact amount of something (as a debt or damages) that before was uncertain. 2. The act of settling a debt by payment or other satisfaction. 3. The act or process of converting assets into cash, esp. to settle debts. one-month liquidation. A
statement of intention. Bankruptcy. A preliminary statement filed by the debtor in a Chapter 7 case, in which the debtor details whether property secured by consumer debt will be retained or surrendered and whether the property is claimed as exempt. • The statement usu. must be filed before the first creditors’ meeting or within 30
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