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Disclosure statement
A comprehensive disclosure document sent to creditors when they are asked to vote on a plan of reorganization in Chapter 11.
Debtor-in-possession
The debtor which remains in control of operations; as opposed to having a trustee operate the company.
Trustee
An agent of the court who manages the property of the debtor for the benefit of the creditors. The court appoints a trustee in most Chapter 7 cases and in Chapter 11 cases when it determines that the debtor's management should not remain in control.
Liquidation value
The aggregate value of a business if its assets are sold piecemeal.
Garnishment Laws
Unsecured creditors in relation to garnishment laws do not hold any collateral that they can take from you if you fall behind on your payments.
Secured creditors
One of two general types of creditors of a company. Secured creditors have a lien on property of the company.
Chapter Thirteen
Bankruptcy proceedings for an individual with the intention of rescheduling the individual's debt (rather than liquidating the individual's assets and debt; an individual files under Chapter 7 to liquidate);
Core proceedings
Those proceedings that are inherent in and fundamental to the administration of a bankruptcy case.
Bankruptcy Court
The federal tribunal where cases under the Bankruptcy Code are litigated.
Claims
Rights to repayment made by creditors against a debtor; they may be liquidated, unliquidated, fixed, contingent, matured, unmatured, secured, unsecured, subordinated, legal or equitable.
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