|
Cash collateral
Cash and cash equivalents held by the debtor in Chapter 11 subject to liens of other parties.
Debtor-in-possession
The debtor which remains in control of operations; as opposed to having a trustee operate the company.
Absolute priority
The order of payment to the different classes of creditors mandated by the Bankruptcy Code. In theory, claims with higher priority are paid in full before other claims receive anything
Asset
An economic resource or item owned by a business that is expected to benefit its future operations.
Bankruptcy Court
The federal tribunal where cases under the Bankruptcy Code are litigated.
Chapter Twenty Two
An unofficial term describing a company that has filed for Chapter 11 twice.
Forbearance and Repayment
The most common way of resolving a loan default is to work out a plan which will let you repay part of the delinquency each month, along with you regular monthly installment.
Insolvency
Another term used to describe a firm that is failing; generally it means that a firm's liabilities exceed its assets or that it is unable to satisfy its obligations as they come due.
Foreclosure
Your mortgage lender may start a foreclosure action and sell your home at a Sheriff's sale. If the sale nets less than you owe, there will be a "deficiency balance" that you will own to the lender.
Chapter Ten
A new chapter of the bankruptcy code proposed in 1992 and pending in 1993. Chapter 10, like Chapter XI of the old code, is designed for small business reorganizations.
|
Did You Know?