The Professional
Bankruptcy Dictionary


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C

cash collateral

Various kinds of cash asssets such as, money, securities, documents of title, and proceeds, products, offspring, rents or profits of property, upon which a creditor has a lien or other secured interest.

11 U.S.C. § 363(a)

Chandler Act of 1938

Legislation substantially adding to the Bankruptcy Act of 1898

chapter 7

a liquidation bankruptcy for an individual, husband and wife, partnership or corporation; typically, nonexempt property is liquidated (sold) and the proceeds paid out to creditors on a pro-rata bases, and the debtor is discharged of liability for the debts. Certain categories of debtors are not entitled to a discharge, and certain categories of property are exempt (i.e., can not be taken from the debtor).

Sec. 701 et seq.

chapter 9

a financial reorganization of a public entity

Sec. 901 et seq.

chapter 11

a financial reorganization of a business

Sec. 1101 et seq.

chapter 12

a financial reorganization of a family farming enterprise

Sec. 1201 et seq.

chapter 13

an adjustment of debts of an individual (which may include a husband and wife, or a sole proprietorship business).

Sec. 1301 et seq.

chapter 20

courthouse slang; a chapter 7 bankruptcy which, after final discharge, is quickly followed by the same debtor filing a chapter 13.

ed. note

choate

A choate lien is defined as "[a] lien in which the lienholder, the property, and the monetary amount are established so that the lien is perfected and nothing else needs to be done to make it enforceable."

Black's Law Dictionary at 934 (7th ed. 1999). IN RE WPG, INC., (D.C. 2002)

claim

means -

(A) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or

(B) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured;

Sec. 101. Definitions

claim against the debtor

includes claim against property of the debtor.

Sec. 102. Rules of construction

claim, proof of

the document that a creditor files in a bankruptcy case to establish his claim in the case; a form used to file a claim.

claims agent

in large cases, often a claims agent is appointed (instead of the clerk) to manage the filing and retention of proofs of claim.

claims register

a file or record located at the bankruptcy clerk's office that lists all proofs of claim that have been filed in a bankruptcy case.

class of creditors

a group of creditors having similar characteristics and entitled to similar treatment in a bankruptcy case

clearing organization

means organization that clears commodity contracts made on, or subject to the rules of, a contract market or board of trade.

Sec. 761. Definitions for this subchapter

clerk

means bankruptcy clerk , if one has been appointed, otherwise clerk of the district court.

Rule 9001. General Definitions

clerk or clerk of the district court

means the court officer responsible for the bankruptcy records in the district.

Rule 9002.

CM/ECF

Case Management/Electronic Case Filing system, which allow for the electronic filing of documents with the bankruptcy clerk.

code

Bankruptcy Code; title 11 of the United States Code.

Rule 9001. General Definitions

co-debtor stay

in Chapter 13 cases, an automatic stay which restrains creditor actions against someone who is co-liable with the debtor on a consumer debt, but who has not filed bankruptcy, and the debtor has agreed to pay the 100% of the debt through the chapter 13 plan.

11 U.S.C. § 1301

collateral

property that a creditor has the right to collect to pay a debt; property pledged to secure payment of a debt

collective bargaining agreement

an employment agreement entered into by an employee with a group of employees to negotiate with the employer over pay, benefits etc.

comfort order

An order signed or issued by a bankruptcy judge even court approval is not required to perform the act. For example, a title company refusing to let a debtor in Chapter 13 sell his or her house without a court order approving it. Orders issued to “comfort” some party to the event.

commission

means Commodity Futures Trading Commission.

Sec. 761. Definitions for this subchapter

commission

means Securities and Exchange Commission;

Sec. 741. Definitions for this subchapter 

commodity broker

means futures commission merchant, foreign futures commission merchant, clearing organization, leverage transaction merchant, or commodity options dealer, as defined in section 761 of this title, with respect to which there is a customer, as defined in section 761 of this title;

Sec. 101. Definitions

community claim

means claim that arose before the commencement of the case concerning the debtor for which property of the kind specified in section 541(a)(2) of this title is liable, whether or not there is any such property at the time of the commencement of the case;

 Sec. 101. Definitions

commodity contract

means -

(A) with respect to a futures commission merchant, contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;

(B) with respect to a foreign futures commission merchant, foreign future;

(C) with respect to a leverage transaction merchant, leverage transaction;

(D) with respect to a clearing organization, contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;

(E) with respect to a commodity options dealer, commodity option;

Sec. 761. Definitions for this subchapter

commodity option

means agreement or transaction subject to regulation under section 4c(b) of the Act.

Sec. 761. Definitions for this subchapter

commodity options dealer

means person that extends credit to, or that accepts cash, a security, or other property from, a customer of such person for the purchase or sale of an interest in a commodity option.

Sec. 761. Definitions for this subchapter

confirmation

a bankruptcy court's approval of a debtor's proposed plan in one of the reorganization chapters or chapter 13

Common usage

consensual lien

A lien granted by agreement between the lienholder and the debtor, such as a mortgage or a UCC security interest

Blum, Bankruptcy And Debtor/creditor (Aspen 1999)

constructive trust

An equitable remedy under which a person who has acquired property by a wrongful act is deemed to hold the property in trust for the victim of the wrong

Blum, Bankruptcy And Debtor/creditor (Aspen 1999)

consumer debt

means debt incurred by an individual primarily for a personal, family, or household purpose;

Sec. 101. Definitions

contested matter

a dispute in a bankruptcy proceeding that may be adjudicated by motion in the bankruptcy court

Rule 9014

contingent debt

a claim for which the debtor's legal duty to pay does not come into existence until triggered by the occurrence of a future event

In re Kaufman, 93 B.R. 319 (Bkrtcy.N.Y. 1988); In re Munsie, 33 F.2d 79 (2nd Cir. 1929)

contract market

means board of trade designated as a contract market by the Commission under the Act.

Sec. 761. Definitions for this subchapter

contract of sale, commodity, future delivery, board of trade, and futures commission merchant

have the meanings assigned to those terms in the Act.

Sec. 761. Definitions for this subchapter

conversion

in a bankruptcy context, changing a case from one chapter to another

Sec. 706(a); 1307(a)

core proceeding

A proceeding in a bankruptcy case that involves the adjudication of rights created by the Code, or concerns issues that, by their nature, could only arise in a bankruptcy case. A sample list on core proceedings may be found at 28 U.S.C. § 157(2).

Blum, Bankruptcy And Debtor/creditor (Aspen 1999)

corporation

(A) includes -
(i) association having a power or privilege that a private corporation, but not an individual or a partnership, possesses;

(ii) partnership association organized under a law that makes only the capital subscribed responsible for the debts of such association;

(iii) joint-stock company;

(iv) unincorporated company or association; or

(v) business trust; but

(B) does not include limited partnership.

 Sec. 101. Definitions

court or judge

means the judicial officer before whom a case or proceeding is pending.

Rule 9001. General Definitions

cramdown

where the balance owed on a secured claim exceeds the value of the property on which it is secured, the provision of a chapter 13 plan that allows the debtor to pay, over time, the secured value of an item, but pay none or only a portion of the unsecured balance

Common usage

creditor

means

(A) entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor;

(B) entity that has a claim against the estate of a kind specified in section 348(d), 502(f), 502(g), 502(h) or 502(i) of this title; or

(C) entity that has a community claim;

 Sec. 101. Definitions

creditor's committee

A committe of creditors appointed by the U.S. Trustee in Chapter 11 cases and sometimes in Chapter 7 cases, to represent the interests of the creditor body as a whole.

Blum, Bankruptcy And Debtor/creditor (Aspen 1999)

custodian

means -

(A) receiver or trustee of any of the property of the debtor, appointed in a case or proceeding not under this title;

(B) assignee under a general assignment for the benefit of the debtor's creditors; or

(C) trustee, receiver, or agent under applicable law, or under a contract, that is appointed or authorized to take charge of property of the debtor for the purpose of enforcing a lien against such property, or for the purpose of general administration of such property for the benefit of the debtor's creditors;

Sec. 101. Definitions

customer

includes -

(A) entity with whom a person deals as principal or agent and that has a claim against such person on account of a security received, acquired, or held by such person in the ordinary course of such person's business as a stockbroker, from or for the securities account or accounts of such entity -

(i) for safekeeping;

(ii) with a view to sale;

(iii) to cover a consummated sale;

(iv) pursuant to a purchase;

(v) as collateral under a security agreement; or

(vi) for the purpose of effecting registration of transfer;

and

(B) entity that has a claim against a person arising out of -

(i) a sale or conversion of a security received, acquired, or held as specified in subparagraph (A) of this paragraph;

or

(ii) a deposit of cash, a security, or other property with such person for the purpose of purchasing or selling a security;

Sec. 741. Definitions for this subchapter

customer name security

means security -

(A) held for the account of a customer on the date of the filing of the petition by or on behalf of the debtor;

(B) registered in such customer's name on such date or in the process of being so registered under instructions from the debtor; and

(C) not in a form transferable by delivery on such date;

Sec. 741. Definitions for this subchapter

customer property

means cash, security, or other property, and proceeds of such cash, security, or property, received, acquired, or held by or for the account of the debtor, from or for the securities account of a customer -

(A) including -

(i) property that was unlawfully converted from and that is the lawful property of the estate;

(ii) a security held as property of the debtor to the extent such security is necessary to meet a net equity claim of a customer based on a security of the same class and series of an issuer;

(iii) resources provided through the use or realization of a customer's debit cash balance or a debit item includable in the Formula for Determination of Reserve Requirement for Brokers and Dealers as promulgated by the Commission under the Securities Exchange Act of 1934; and

(iv) other property of the debtor that any applicable law, rule, or regulation requires to be set aside or held for the benefit of a customer, unless including such property as customer property would not significantly increase customer property; but

(B) not including -

(i) a customer name security delivered to or reclaimed by a customer under section 751 of this title; or

(ii) property to the extent that a customer does not have a claim against the debtor based on such property;

Sec. 741. Definitions for this subchapter