The Professional
Bankruptcy Dictionary


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I

illiquid

an asset that cannot easily be converted into cash

impaired

In Chapter 11 cases, when a plan of reorganization alters the contractual rights of a class of holders of claims, that class is deemed to be impaired.  A class that is unimpaired is deemed to automatically accept a plan of reorganization.

includes and ''including''

are not limiting;

Sec. 102. Rules of construction

indenture

means mortgage, deed of trust, or indenture, under which there is outstanding a security, other than a voting-trust certificate, constituting a claim against the debtor, a claim secured by a lien on any of the debtor's property, or an equity security of the debtor;

Sec. 101. Definitions

indenture trustee

means trustee under an indenture

Sec. 101. Definitions

individual

a natural person, as opposed to a business or other entity

individual with regular income

means individual whose income is sufficiently stable and regular to enable such individual to make payments under a plan under chapter 13 of this title, other than a stockbroker or a commodity broker;

Sec. 101. Definitions

indubitable equivalent

value equal to the value of an interest in an asset

insider

includes -

(A) if the debtor is an individual -

(i) relative of the debtor or of a general partner of the debtor;
(ii) partnership in which the debtor is a general partner;
(iii) general partner of the debtor; or
(iv) corporation of which the debtor is a director, officer, or person in control;

(B) if the debtor is a corporation -

(i) director of the debtor;
(ii) officer of the debtor;
(iii) person in control of the debtor;
(iv) partnership in which the debtor is a general partner;
(v) general partner of the debtor; or
(vi) relative of a general partner, director, officer, or person in control of the debtor;

(C) if the debtor is a partnership -

(i) general partner in the debtor;
(ii) relative of a general partner in, general partner of, or person in control of the debtor;
(iii) partnership in which the debtor is a general partner;
(iv) general partner of the debtor; or
(v) person in control of the debtor;

(D) if the debtor is a municipality, elected official of the debtor or relative of an elected official of the debtor;

(E) affiliate, or insider of an affiliate as if such affiliate were the debtor; and

(F) managing agent of the debtor;

Sec. 101. Definitions

insolvent

means -

(A) with reference to an entity other than a partnership and a municipality, financial condition such that the sum of such entity's debts is greater than all of such entity's property, at a fair valuation, exclusive of -

(i) property transferred, concealed, or removed with intent to hinder, delay, or defraud such entity's creditors; and

(ii) property that may be exempted from property of the estate under section 522 of this title;

(B) with reference to a partnership, financial condition such that the sum of such partnership's debts is greater than the aggregate of, at a fair valuation -

(i) all of such partnership's property, exclusive of property of the kind specified in subparagraph (A)(i) of this paragraph; and

(ii) the sum of the excess of the value of each general partner's nonpartnership property, exclusive of property of the kind specified in subparagraph (A) of this paragraph, over such partner's nonpartnership debts; and

(C) with reference to a municipality, financial condition such that the municipality is -

(i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or

(ii) unable to pay its debts as they become due;

Sec. 101. Definitions

institution-affiliated party

(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal Deposit Insurance Act; and

(B) with respect to an insured credit union, has the meaning given it in section 206(r) of the Federal Credit Union Act;

Sec. 101. Definitions

insured credit union

has the meaning given it in section 101(7) of the Federal Credit Union Act;

 Sec. 101. Definitions

insured depository institution

(A) has the meaning given it in section 3(c)(2) of the Federal Deposit Insurance Act; and

(B) includes an insured credit union (except in the case of paragraphs (21B) and (33)(A) of this subsection);

Sec. 101. Definitions

intellectual property

means -

(A) trade secret;

(B) invention, process, design, or plant protected under title 35;

(C) patent application;

(D) plant variety;

(E) work of authorship protected under title 17; or

(F) mask work protected under chapter 9 of title 17; to the extent protected by applicable nonbankruptcy law.

Sec. 101. Definitions

interim trustee

A trustee appointed when a chapter 7 case is filed, who serves until a permanent trustee is appointed; in actual practice, the "interim" trustee typically takes over as the permanent trustee in chapter 7 cases.

Sec. 701

involuntary bankruptcy

A chapter 7 or chapter 11 case initiated by a debtor's creditors rather than by the debtor.

Sec. 303

ipso facto clause

a provision of a contract providing that the filing of a bankruptcy is deemed a default on the contract; disfavored in the law