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FAQs
Common Terms and Definitions
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What are exemptions?
Exempt property is property that is taken out of the bankruptcy estate and kept by an individual debtor. The availability and amount of property the debtor may claim as exempt depends on the state the debtor lives in. In some states, the debtor has a choice between a specified federal list of exemptions and the exemptions provided by the state
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx
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What are the differences between ECF and Pacer?
PACER refers to Public Access Court Electronic Records. Pacer allows one to view case information at a cost. In essence you need a PACER account to see what you filed in ECF. The acronym ECF refers to the Electronic Case Filing system. ECF allows attorneys and limited filer’s access to filing their documents directly with the court 24 hours a day 7 days a week. Gaining account access to ECF is also determined by each court in the Federal System.
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What does "In Forma Pauperis" mean?
Permission given by the court to a person to file a case without payment of the required court fees because the person cannot pay them.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What does it mean when the document is restricted?
The Judicial Conference Privacy Policy protects the accessibility of private and sensitive information such as full Social Security numbers on any document filed after December 1, 2003. This type of information could be used for identity theft and access must be restricted to court users only. A redacted version of the document must be filed. However, CM/ECF documents filed before the policy was implemented may still contain private information.
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What is a "judgement"?
It is a court judgment awarding a plaintiff the relief sought in the complaint because the defendant has failed to appear in court or otherwise respond to the complaint.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is a bankruptcy petition?
The document that initiates the filing of a bankruptcy proceeding, setting forth basic information regarding the debtor, including name, address, chapter under which the case is filed, and estimated amount of assets and liabilities.
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What is a bankruptcy trustee?
The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. Trustee or bankruptcy administrator, The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. The trustee’s responsibilities include reviewing the debtor’s petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7, the trustee liquidates property of the estate, and makes distributions to creditors. Trustees in chapter 12 and 13 have similar duties to a chapter 7 trustee and the additional responsibilities of overseeing the debtor’s plan, receiving payments from debtors, and disbursing plan payments to creditors
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is a Certificate of Service?
When you file a motion or pleading with the Court, you must file a written statement that you have mailed or delivered a copy of the motion to all interested parties. This is called a certificate of service. You must list the name and address of each person and attorney being served with the motion, and the name of the party each attorney represents, and you, your attorney, or an employee of your attorney must sign the certificate.
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What is a default judgment?
It is a court judgment awarding a plaintiff the relief sought in the complaint because the defendant has failed to appear in court or otherwise respond to the complaint.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is a discharge?
Discharge is a release of a debtor from personal liability for certain dischargeable debts set forth in the Bankruptcy Code. A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx
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What is a disclosure statement?
It is a document filed in a chapter 11 case by the debtor designed to provide “adequate information” to creditors to allow them to evaluate the chapter 11 plan of reorganization. The disclosure statement provides such information as the debtor’s financial history, the cause of financial difficulties, claims and other financial data, any pending litigation, and a summary of the plan of reorganization.
http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is a disclosure statement?
It is a document filed in a chapter 11 case by the debtor designed to provide “adequate information” to creditors to allow them to evaluate the chapter 11 plan of reorganization. The disclosure statement provides such information as the debtor’s financial history, the cause of financial difficulties, claims and other financial data, any pending litigation, and a summary of the plan of reorganization.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is a joint petition? Does my spouse have to file for bankruptcy if I file?
A joint bankruptcy petition is a voluntary bankruptcy petition filed by a married couple. A married couple may choose to file a single joint petition, rather than two individual petitions. For further information please seek legal assistance.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx
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What is a joint petition? Does my spouse have to file for bankruptcy if I file?
A joint bankruptcy petition is a voluntary bankruptcy petition filed by a married couple. A married couple may choose to file a single joint petition, rather than two individual petitions. For further information please seek legal assistance.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx
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What is a Judgement?
It is a court judgment awarding a plaintiff the relief sought in the complaint because the defendant has failed to appear in court or otherwise respond to the complaint.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is a reaffirmation agreement?
A reaffirmation agreement is an agreement between the debtor and a creditor to continue paying a dischargeable debt after the bankruptcy, usually for the purpose of keeping collateral or mortgaged property that would otherwise be subject to repossession.
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What is an "order confirming plan"?
It is an order signed by a judge approving the plan of reorganization. In chapter 11 cases, following the filing of the disclosure statement and plan of reorganization and notice to all creditors and interested parties, a hearing is held before the bankruptcy judge to consider the plan. If the plan is approved, an order is signed by the judge. The order forms a basis for the treatment of creditors’ claims, as set forth in the plan of reorganization. An order confirming plan is also issued in chapter 12 and chapter 13 cases after the plan has been approved by the bankruptcy judge.
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What is an adversary proceeding?
A lawsuit arising in or related to a bankruptcy case that begins by filing a complaint with the court, that is, a "trial" that takes place within the context of a bankruptcy case.
In bankruptcy proceedings, an adversary is a civil lawsuit commenced by the filing of a complaint by a party in interest to accomplish a result, such as to recover money or property or to object to the debtor’s discharge. Adversary proceedings are assigned separate adversary proceeding numbers, which are used in addition to the number assigned to the bankruptcy case, and a separate docket file of these proceedings is kept. For more information please consult Fed. R. Bankr. P. 7001.
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What is an involuntary petition?
It is a bankruptcy petition filed by one or more creditors against a corporate or individual debtor alleging that the debtor is not paying its bills as they become due and that the debtor should be subjected to bankruptcy proceedings. For further information see 11U.S.C. 303
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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What is the "means test"?
It is a test applied by section 707(b)(2) of the Bankruptcy Code to determine whether an individual debtor’s chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse is presumed if the debtor’s aggregate current monthly income over five years, less certain statutorily allowed expenses is more than (a) $10,950, or (b) 25% of the debtor’s nonpriority unsecured debt, as long as that amount is at least $6,575. The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income.
https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx