The Professional
Bankruptcy Dictionary


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B

badges of fraud

Various kinds of conduct that may suggest fraudulent intent on the part of the debtor.

BAFJA

The Bankruptcy Amendments and Federal Judgeship Act of 1984.

bankrupt

subject to, or under, legal process because of insolvency; unable to pay one's debts; insolvent

New Webster's Dictionary of the English Language

bankruptcy

the state of being or the fact of becoming bankrupt.

New Webster's Dictionary of the English Language

Bankruptcy Act of 1898

The bankruptcy statute enacted in 1898 and repealed in 1978 to be replaced by the Bankruptcy Reform Act of 1978 (the current statute).

Bankruptcy Act of 1932

An expansion of reorganization for businesses, superseded by the Chandler Act of 1938.

Bankruptcy Appellate Panel (BAP)

The three-judge panel adopted in several federal circuits, made up of bankruptcy judges and providing an alternative forum for bankruptcy appeals (alternative from the District Court).

bankruptcy clerk

The office of the bankruptcy court that receives and processes all documents filed in bankruptcy cases.

bankruptcy estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing.

§ 541

Bankruptcy Reform Act of 1978

The 1978 statute under which bankruptcy would be governed, establishing the current Bankruptcy Code and replacing the former Bankruptcy Act.

Bankruptcy Reform Act of 1994

The 1994 legislation amending the Bankruptcy Code. This enactment included provisions to expedite bankruptcy proceedings, standardize fees, and encourage consumers to file chapter 13 instead of chapter 7. Created the National Bankruptcy Review Commission to do a thorough review of the Bankruptcy Code and recommendations for additional changes.

bankruptcy clerk

means a clerk appointed pursuant to 28 U.S.C. § 156(b).

Rule 9001. General Definitions

Bankruptcy Code or Code

means title 11 of the United States Code.

Rule 9001. General Definitions

bankruptcy petition preparer

a person, other than an attorney or an employee of an attorney, who prepares for compensation a document for filing (document for filing; a petition or any other document prepared for filing by a debtor in a United States Bankruptcy court or a United States district court in connection with a case under this title (title 11, U.S.C., Bankruptcy).

Sec. 110(a)

bankruptcy rules

also known as the Federal Rules of Bankruptcy Procedure, the rules that govern the procedures in bankruptcy and adversary cases. In addition to these rules, each bankruptcy court typically adopts is own “local rules” that supplement the Federal Rules.

BAP

The Bankruptcy Appellate Panel

BAPCPA

The Bankruptcy Abuse Prevention & Consumer Protection Act of 2005.

best interests test

In Chapter 13 and Chapter 11, a requirement for confirmation of the plan; under the "test" the plan must provide to pay the general unsecured creditors at least as much as they would have been paid had the debtor filed in Chapter 7, instead.

bifurcation

the act of splitting an undersecured claim into its respective secured and unsecured portions for listing and treatment in the bankruptcy

bona fide purchaser

A purchaser who purchases goods or property for fair value and without notice of a lien or other encumberance on the property held by a third party

bust-out

The act of a person going on a credit spree (incurring large debts on credit cards and store charge accounts) on the eve of filing bankruptcy.