The Professional
Bankruptcy Dictionary


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PACER

The acronym for Public Access to Court Electronic Records. An Internet service provided by the court system that provides information and documents in all filed bankruptcy cases across the nation.

party-in-interest

For purposes of Chapter 11, "party-in-interest" includes the debtor, the trustee, a creditors' committee, an equity security holders' committee, a creditor, an equity security holder, or any indenture trustee; 11 U.S.C. § 1109(b). May also include "... any party that can demonstrate it has an interest in the bankruptcy case ..." In re Hathaway Ranch Partnership, 116 B.R. 208, 212 (Bankr.C.D.Cal. 1990). Has been defined as one who has a direct pecuniary interest in the matter before the court. Nintendo Co. Ltd v. Patten (In re Alpex Computer Corp), 71 F.3d 353, 356 (10th Cir. 1995) Has been defined as the holder of an allowed claim. In re Stewart, 46 B.R. 73 (Bankr. D. Or. 1985) "party-in-interest" is not otherwise defined in the Bankruptcy Code.

perfection

The process of making a lien legally effective by completing any required steps such as filing it with the county recorder's office.

permanent injunction

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

person

includes individual, partnership, and corporation, but does not include governmental unit, except that a governmental unit that -

(A) acquires an asset from a person -

(i) as a result of the operation of a loan guarantee agreement; or

(ii) as receiver or liquidating agent of a person;

(B) is a guarantor of a pension benefit payable by or on behalf of the debtor or an affiliate of the debtor; or

(C) is the legal or beneficial owner of an asset of -

(i) an employee pension benefit plan that is a governmental plan, as defined in section 414(d) of the Internal Revenue Code of 1986; or

(ii) an eligible deferred compensation plan, as defined in section 457(b) of the Internal Revenue Code of 1986; shall be considered, for purposes of section 1102 of this title, to be a person with respect to such asset or such benefit;

Sec. 101. Definitions

petition

means petition filed under section 301, 302, 303, or 304 of this title, as the case may be, commencing a case under this title;

Sec. 101. Definitions

plan

A chapter 11 or chapter 13 debtor's detailed description of how the debtor proposes to pay creditors' claims over a fixed period of time. The plan may propose payment in whole or in part.

postpetition

any event happening after the date the bankruptcy was filed

pot plan

A chapter 13 plan under which the debtor pays a fixed amount, or “pot of money,” into the bankruptcy estate. The percentage of a claim that a creditor ultimately receives from the bankruptcy estate will depend on the total amount of approved claims.

Meyer v. Pagano, _____ B.R. ______ (D.N.D.Cal. 2002)

prebankruptcy planning

the allowed practice of transferring non-exempt property to exempt property in contemplation of filing bankruptcy. The term may encompass a broader range of "planning" such as choice of venue, chapter of bankruptcy, transfer-back of prepetition transfers, etc.

preference, or preferential transfer

a pre-petition payment or transfer made to a creditor, during a certain period of time before the bankruptcy petition is filed, on account of an antecedent debt, which enables such creditor to receive more than such creditor would receive had the case been one under chapter 7.

Sec. 547(b), (c)

preferential lien

a lien obtained under circumstances which make it a preferential payment or transfer and subject to being avoided. See preference, above.

prepackaged bankruptcy

before filing a bankruptcy case (typically a chapter 11) debtor and creditors may have negotiated an agreed upon plan of reorganization. The bankruptcy petition can then be filed and the plan proposed and confirmed with much less time and expense.

prepetition

the time before the date that a bankruptcy petition is filed

Common usage

prepetition arrears or default

money owed to a creditor before a bankruptcy is filed, or a default on the terms of lease or executory contract that occurred prior to filing.

present value

The present equivalent of the value of a future amount or future steam of payments, adjusted to account for inflation.

priority

The Bankruptcy Code's statutory ranking of unsecured claims that determines the order in which unsecured claims will be paid if there is not enough money to pay all unsecured claims in full.

List of Terms; Administrative Office of the United States Courts

priority claim

an unsecured claim falling into one of the categories listed in Bankruptcy Code § 507.

production payment

means a term overriding royalty satisfiable in cash or in kind -

(A) contingent on the production of a liquid or gaseous hydrocarbon from particular real property; and

(B) from a specified volume, or a specified value, from the liquid or gaseous hydrocarbon produced from such property, and determined without regard to production costs;

Sec. 101. Definitions

professional person

a person such as a lawyer, accountant, appraiser or other professional person employed on behalf of the bankruptcy estate, the debtor, or the trustee.

proof of claim

The official form prescribed by the Bankruptcy Rules by which a creditor files his claim or evidence of debt in a bankruptcy case

property of the estate

The commencement of a bankruptcy case creates an "estate." The estate technically becomes the temporary legal owner of all of the debtor's property. The estate consists of all legal or equitable interests of the debtor in property as of the commencement of the case, including property owned or held by another person if the debtor has an interest in the property. Generally speaking, the debtor's creditors are paid from nonexempt property of the estate.

Public Information Series of the Bankruptcy Judges Division

purchaser

means transferee of a voluntary transfer, and includes immediate or mediate transferee of such a transferee;

Sec. 101. Definitions

purchase money security interest

A security interest in property, to the extent that it secures a loan or credit given to the debtor for the express purpose of acquiring the property and actually used by the debtor for that purpose.

Blum, Bankruptcy And Debtor/Creditor, Aspen 1999