Publications
Bernstein's Dictionary of Bankruptcy Terminology
published by Bernstein Law Firm, P.C.
Suite 2200 Gulf Tower, Pittsburgh, PA 15219
Robert S. Bernstein, managing partner of Bernstein Law Firm, P.C., former President of the Commercial Law League of America, and author
of Get P.A.I.D., serves as counsel to bankruptcy trustees, creditors' committees, and creditors in bankruptcy proceedings throughout Pennsylvania, Ohio, and West Virginia. The firm counsels clients in Bankruptcy, Restructuring, Banking, Business, Collections, Mortgage Foreclosure, Insolvency, Real Estate, Administrative, Appellate, and Civil Law.
INTRODUCTION
Bankruptcy is fast becoming an everyday topic of conversation. Its impact on the lives of individuals and corporations can affect them in numerous ways. Like most specialties, bankruptcy law has a language of its own. Its unfamiliar words and phrases make it difficult to comprehend. This dictionary explains the most commonly used bankruptcy terms.
HOW TO USE THIS DICTIONARY
Throughout the dictionary, words or phrases defined elsewhere, either with their own definition or in another context, are in boldface and linked to their definition. The word is linked only the first time it is used in a particular definition.
There are places where a phrase is in boldface but each word of the phrase is defined separately and linked to its own definition.
While defining some terms, we felt an example might further explain the definition. Examples are in italics.
The dictionary is set up in alphabetical order where appropriate.
DISCLAIMER
This dictionary should not be relied on as legal advice. Predicting how bankruptcy may affect any given situation requires a knowledge of the facts surrounding that situation. Specific questions should be directed to a bankruptcy attorney. Dollar amounts of some statutory provisions may increase automatically from year to year. Before relying on specific amounts, be sure to check the current calculations.
Copyright 2002--Bernstein Law Firm, P.C.
Dictionary of Bankruptcy Terminology
Please select the beginning letter of the alphabet for the term you are looking up, or browse
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
TERMS (click on the link to jump to the definition below)
503(b)(9) CLAIM (Twenty (20) Day Administrative Claim)
503(b)(9) adds a new section for administrative claims for reclaiming creditors that is limited to the value of the goods received by the debtor in the ordinary course of business within 20 days before filing.
ABANDONMENT
A process by which the court releases property from its control. This occurs when property of the estate is of little or no value to the estate.
If the debtor's real estate is worth $100,000, but has mortgages of $110,000 against it, the trustee may "abandon" the property rather than administer it.
ABSOLUTE PRIORITY RULE (also see Plan, Chapter 11; Cramdown)
In a Chapter 11 Plan, the debtor-in-possession must completely satisfy the claims of a higher, dissenting class before the claims of classes lower in priority can participate in the reorganization. Thus, a corporate debtor's shareholders cannot receive distribution (or retain any interest) unless the Plan provides for the unsecured creditors to be paid in full if the class of unsecured creditors has rejected the plan.
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