The ABCs of Bankruptcy & Foreclosure: Glossary (p-s)
Over the next few weeks we will continue to post common bankruptcy and foreclosure legal terminology so when you are doing research or begin filing you can have a better understanding of the jargon involved. On Wednesday BANKRUPTCY INK will move back into new articles and commentary, but we do want to get the full glossary posted so you can have a better understanding of what all the technical words mean.
P
Party in Interest
A party who has standing in a matter dealing with a bankruptcy case to be heard by the court.
Petition
The document that once filed commences a bankruptcy proceeding.
Petition Preparer
A non-legal organization where bankruptcy petitions are arranged.
Personal Property
All personal effects other than the land attached to the estate.
Plan
The debtor's detailed proposal to pay creditors' claims over a fixed period of time.
Plaintiff
A person or business that files a formal complaint with the court.
Post-Petition Transfer
A transfer of the debtor's property made after the commencement of the case.
Pre-Bankruptcy Planning
The arrangement of a debtor's property to take maximum advantage of exemptions.
Preference or Preferential Debt Payment
A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy that provides the creditor with more than they would receive in the debtor's Chapter 7 Bankruptcy case.
Principal
The person who appoints an attorney to represent them when creating a legal document or action.
Priority
The Bankruptcy Code's statutory ranking of unsecured claims that determines the order in which those will be paid when there is not enough money to pay all unsecured claims in full.
Priority Claim
An unsecured claim that is entitled to be paid ahead of other unsecured claims that are not entitled to priority status.
Proceeds for Damaged Exempt Property
Money collected to pay for exempt property that is no longer exempt because it has been damaged or destroyed.
Proof of Claim
The written statement and other documentation filed by a creditor that describes the issues with the debtor.
Property (of the Estate)
All legal or equitable interests in property of the debtor at the time the case begins.
R
Reaffirmation agreement
An official understanding by a Chapter 7 debtor to continue paying a dischargeable debt after the bankruptcy.
Repossession
A creditor's taking of property that has been pledged as collateral for a loan after the loan goes into default.
Restructuring
Out-of-court attempt by the debtor to reorganize financial matters in order to pay off what is owed.
S
Secured Creditor
A creditor holding a claim against the debtor who has the right to take and hold or sell certain property of the debtor in satisfaction of some or all of the claim.
Secured Debt
A debt when a creditor has a lien.
Set Off
A counter claim to discharge or reduce the debt.
Schedules
Detailed lists filed by the debtor along with the petition showing assets, liabilities, and other financial information.
Short Sale (of House)
A sale of an individual’s home where the proceeds fall short of what the owner still owes on the mortgage.
Skeleton Filing
Term applied when not all the proper paperwork for a bankruptcy case has been filed.
Statement of Financial Affairs
A series of questions concerning income, transfers of property, lawsuits by creditors, etc., the debtor needs to answer in writing before a bankruptcy is filed.
Statement of Intention
A declaration made by a Chapter 7 debtor regarding plans for dealing with consumer debts that are secured by property of the estate.
Substantial Abuse
Taking frequent requests regarding an individual debtor to file a bankruptcy petition.
Substantive Consolidation
Putting the assets and liabilities of two or more related debtors into a single pool to pay creditors.