Filing a Petition in Bankruptcy

These flashcards cover key terms and definitions related to the process of filing a petition in bankruptcy, as discussed in the lecture notes.

Voluntary Petition

A bankruptcy proceeding initiated by a debtor filing a petition for relief.

Involuntary Petition

A bankruptcy proceeding initiated by creditors to place a debtor into bankruptcy.

Alleged Debtor

The debtor in an involuntary proceeding who is not considered bankrupt until court relief is ordered.

Prepetition Credit Counseling

Counseling that a debtor must receive from a credit counseling agency before seeking bankruptcy relief.

Debt Relief Agency

Any person, including a bankruptcy petition preparer, providing bankruptcy assistance for money or valuable consideration.

Bankruptcy Assistance

Goods or services provided to assist a person with advice, counsel, document preparation, or court appearances in a bankruptcy proceeding.

Order for Relief

A statutory term that signifies a debtor has obtained bankruptcy relief.

Petitioning Creditors

Creditors who initiate an involuntary petition against a debtor.

Statements and Schedules

Common name for the Statement of Financial Affairs and Schedules of Assets and Liabilities filed by any debtor.

Joint Cases

A bankruptcy proceeding involving an individual and their spouse.

Substantive Consolidation

When the court consolidates multiple proceedings for all purposes.

Administrative Consolidation

When the court consolidates multiple proceedings for less than all purposes.

First Day Order

An order where all filing entities are administratively consolidated at the beginning of the case.

Venue

The proper Bankruptcy Court (federal district) in which a bankruptcy proceeding should be commenced. Generally, venue is where the debtor resides or where the debtor business’s primary business address or assets are located.

Statements and Schedules

common name of the Statement of Financial Affairs and Schedules of Assets and Liabilities filed by any debtor within the bankruptcy system.

Statement of Financial Affairs

a fundamental bankruptcy pleading consisting of a questionnaire concerning a debtor’s financial affairs

Substantive consolidation

when the court consolidates two or more proceedings for all purposes.

Administrative consolidation

when the court consolidates two or more proceedings for less than all purposes

first day order

when all the filing entities are administratively consolidated at the beginning of the case

petitioning creditors

creditors initiating an involuntary petition against a debtor

order of relief

a statutory term of art, which signifies that a debtor has obtained bankruptcy relief

Insolvent

A financial state where an individual or entity is unable to meet their debts as they come due.