The Professional
Bankruptcy Dictionary


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D

debt

means liability on a claim.

Sec. 101. Definitions

debt for child support

means a debt of a kind specified in section 523(a)(5) of this title for maintenance or support of a child of the debtor;

Sec. 101. Definitions

debtor

means person or municipality concerning which a case under this title has been commenced;

Sec. 101. Definitions

debtor

(A) if the debtor is a corporation, "debtor" includes, if designated by the court, any or all of its officers, members of its board of directors or trustees or of a similar controlling body, a controlling stockholder or member, or any other person in control;

(B) if the debtor is a partnership, "debtor" includes any or all of its general partners or, if designated by the court, any other person in control.

Rule 9001. General Definitions

debtor in possession

means debtor except when a person that has qualified under section 322 of this title is serving as trustee in the case.

Sec. 1101. Definitions for this chapter

discharge

extinguishing the debtor's personal liability on dischargeable debts, through the granting of a permanent injunction protecting the debtor from efforts to collect such debts as a personal liability. A discharge protects the debtor from personal liability for discharged debts and prevents the creditors owed those debts from taking any action against the debtor or his property to collect the debts.

Public Information Series of the Bankruptcy Judges Division

dischargeable

a debt capable of being discharged in bankruptcy

disclosure statement

a written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide adequate information to creditors to enable them to evaluate the chapter 11 plan of reorganization

List of Terms; Administrative Office of the United States Courts

disgorgement

the term typically used to describe a bankruptcy court order to an attorney (typically the debtor's attorney) to refund money paid to the attorney because payment was unauthorized under the provisions of the Bankruptcy Code, or for other reasons; the money is typically ordered returned either to the estate or the debtor.

disinterested person

means person that -

(A) is not a creditor, an equity security holder, or an insider;

(B) is not and was not an investment banker for any outstanding security of the debtor;

(C) has not been, within three years before the date of the filing of the petition, an investment banker for a security of the debtor, or an attorney for such an investment banker in connection with the offer, sale, or issuance of a security of the debtor;

(D) is not and was not, within two years before the date of the filing of the petition, a director, officer, or employee of the debtor or of an investment banker specified in subparagraph

(B) or (C) of this paragraph; and

(E) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor or an investment banker specified in subparagraph (B) or (C) of this paragraph, or for any other reason;

Sec. 101. Definitions

dismissal

the court's termination of the bankruptcy case upon voluntary request or withdrawal by the petitioner, or on the motiion of a party in interest, or by the court "sua sponte."

dismissal with prejudice

the court's dismissal of a bankruptcy case with the added condition that the debtor is barred from refiling a bankruptcy for a period of time, or barred from discharging certain debts in any future bankruptcy case.

distribution

also called dividend, the payment to creditors of money generated by the liquidation of a debtor's property in chapter 7, or payments to creditors made pursuant to a confirmed chapter 11 or chapter 13 plan.

disposable income

income which is received by the debtor and which is not reasonably necessary to be expended for maintenance or support of the debtor or a dependent of the debtor; for a debtor engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.

Sec. 1325(b)(2)

district court, trial court, court, district judge, or judge

means bankruptcy judge if the case or proceeding is pending before a bankruptcy judge.

Rule 9002.

dividend

also called distribution, the payment to creditors of money generated by the liquidation of a debtor's property in chapter 7, or payments to creditors made pursuant to a confirmed chapter 11 or chapter 13 plan.

docket

the court's official record or registry of the history of the case, including documents filed, hearings held, and orders made.

drop-dead clause

a provision in a contract or rehabilitation plan that requires exact compliance with the debtor's obligations and gives the creditor an immediate right of action in th event of default. For example, a stipulation providing that if the debtor falls behind in car payments one more time, the creditor can repo the car without need of seeking relief from stay.