The Professional
Bankruptcy Dictionary


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L

lien

charge against or interest in property to secure payment of a debt or performance of an obligation;

Sec. 101. Definitions

levy

a term used to describe the act of a taxing authority to seize a taxpayer's property held by a third person on account of the taxpaeyr's delinquent taxes

lien stripping

the provision of a plan providing for payment of an undersecured claim at the value of the collateral only, with the unsecured balance discharged in whole or in part. Lien strip-off - a lien set aside on property that has no equity to which the lien may attach

liquidate

to marshal and sell a debtor's property and distribution of the proceeds to creditors in a bankruptcy

Common usage

liquidated claim

a claim for which the amount and liability have been precisely determined, or which is capable of ready and precise determination with simple arithmetical calculations.

Lundin, Hon. Keith M., Chapter 13 Bankruptcy (Bankruptcy Press)

liquidating chapter 11 or chapter 13

A chapter 11 reorganization or an adjustment of debt under Chapter 13 which provides for the sale of the assets, payoff of claims and prompt final discharge without the long-term payment schedule and preservation of assets more typical of such bankruptcies.

loading up

a debtor deliberately running up debt on the eve of bankruptcy

lockup agreement

A letter agreement between a company and certain of its major constituents in support of a proposed Chapter 11 plan of reorganization.

long-arm powers

generally, the bankruptcy trustee's power, under certain circumstances, to avoid or set aside a lien or security interest on property

Sec. 544, 545, 547, 548, 553

long-term secured debt

any secured debt on which the last payment is due after the date on which the final payment under the plan is due.

Sec. 1322(b)(5)