Bankruptcy Terms and Definitions

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);

Chapter Twenty Two
An unofficial term describing a company that has filed for Chapter 11 twice.

Core proceedings
Those proceedings that are inherent in and fundamental to the administration of a bankruptcy case.

Set-off
The ability to discharge or reduce a debt by applying a counter claim between the same parties.

Small claims
Also sometimes called convenience claims - under a plan of reorganization or liquidation, claims that are small (e.g. in the hundreds or thousands of dollars range) and numerous are often grouped into a single class and settled for cash for administrative convenience.

Bankruptcy Court
The federal tribunal where cases under the Bankruptcy Code are litigated.

Exclusivity (period of)
A debtor in Chapter 11 has the exclusive right to file a plan of reorganization for the first 120 days of its bankruptcy. Thereafter, unless the period of exclusivity is extended by the court, other parties may file reorganization plans.

Chapter Eleven
Reorganization proceedings, generally for business entities; the debtor maintains control of the business in Chapter 11 (unless the Court appoints a trustee).

Voluntary bankruptcy
Bankruptcy filed by the debtor itself; data from the U.S. Administrative Office of the Courts subdivides bankruptcies into voluntary and involuntary.

Asset
An economic resource or item owned by a business that is expected to benefit its future operations.