Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).  For consumers, the main chapters are 7 and 13.

Bankruptcy Code

The informal name for title 11 of the United States Code (11 U.S.C. § 101-1330), the federal bankruptcy law.  This is the “code” or as President Trump refers to them as “the chapters” because you file under chapter 7 or chapter 13.

Bankruptcy Estate

All legal or equitable interests of the debtor in property, both real and personal, at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)

Bankruptcy Trustee

A private individual, typically a bankruptcy attorney, who is appointed in all chapter 7, chapter 12, and chapter 13 cases to represent the interests of the bankruptcy estate and the debtor’s creditors.

Business Bankruptcy

A bankruptcy in which the debtor is a business or an individual involved in business and the debts were incurred primarily for business purposes. Could be a chapter 7 or 13.