|
Debtor
The entity seeking protection from creditors under the bankruptcy laws.
Core proceedings
Those proceedings that are inherent in and fundamental to the administration of a bankruptcy case.
Repo Laws Repossess
The repo laws: If you don't make your car payments for a number of months, your lender may repo or repossess your car. Without a car you may not be able to get to work.
Bankrupt
The entity that files a bankruptcy; the debtor; the insolvent entity. This is a non-technical term and is not used in the Bankruptcy Code.
Adequate protection
The right of a party with an interest in the debtor's property (such as a secured creditor) to assurance that its interest will not be diminished during the bankruptcy proceedings.
Liquidation value
The aggregate value of a business if its assets are sold piecemeal.
Chapter Seven
Liquidation proceedings; generally assets are sold by a trustee and the company ceases operation. (Individuals may file Chapter 7 also.)
Cash collateral
Cash and cash equivalents held by the debtor in Chapter 11 subject to liens of other parties.
Liquidating reorganization
An informal term for a Chapter 11 proceeding when the company is essentially liquidated through one or more asset sales.
Chapter Twenty Two
An unofficial term describing a company that has filed for Chapter 11 twice.
|
Did You Know?