The Professional
Bankruptcy Dictionary


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schedules

documents consisting of lists of debts, property and other information that are filed together with the petition at the commencement of a bankruptcy case

Sec. 521(1); Rule 1007

scream or die

An expression often used to describe a notice of motion made in bankruptcy court giving parties in interest a certain number of days in which to object to the requested action; if no party objects within the given time (typically 20 days) the judge will sign the order.

section 341 meeting

the meeting of creditors required and conducted pursuant to 11 U.S.C. § 341. See, meeting of creditors.

secured debt

debts, for which the extention of credit was based upon the creditor's right to seize pledged property on default, in addition to the debtor's ability to pay.

Public Information Series of the Bankruptcy Judges Division

secured creditor

a creditor whose debt is secured by property of the debtor's estate or by right of setoff; may also include property in which the estate has an "interest."

List of Terms; Administrative Office of the United States Courts

securities clearing agency

means person that is registered as a clearing agency under section 17A of the Securities Exchange Act of 1934 or whose business is confined to the performance of functions of a clearing agency with respect to exempted securities, as defined in section 3(a)(12) of such Act for the purposes of such section 17A;

Sec. 101. Definitions

securities contract

means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;

Sec. 741. Definitions for this subchapter

security

(A) includes -
(i) note;

(ii) stock;

(iii) treasury stock;

(iv) bond;

(v) debenture;

(vi) collateral trust certificate;

(vii) pre-organization certificate or subscription;

(viii) transferable share;

(ix) voting-trust certificate;

(x) certificate of deposit;

(xi) certificate of deposit for security;

(xii) investment contract or certificate of interest or participation in a profit-sharing agreement or in an oil, gas, or mineral royalty or lease, if such contract or interest is required to be the subject of a registration statement filed with the Securities and Exchange Commission under the provisions of the Securities Act of 1933, or is exempt under section 3(b) of such Act from the requirement to file such a statement;

(xiii) interest of a limited partner in a limited partnership;

(xiv) other claim or interest commonly known as ''security''; and

(xv) certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase or sell, a security; but

(B) does not include -

(i) currency, check, draft, bill of exchange, or bank letter of credit;

(ii) leverage transaction, as defined in section 761 of this title;

(iii) commodity futures contract or forward contract;

(iv) option, warrant, or right to subscribe to or purchase or sell a commodity futures contract;

(v) option to purchase or sell a commodity;

(vi) contract or certificate of a kind specified in subparagraph (A)(xii) of this paragraph that is not required to be the subject of a registration statement filed with the Securities and Exchange Commission and is not exempt under section 3(b) of the Securities Act of 1933 from the requirement to file such a statement; or

(vii) debt or evidence of indebtedness for goods sold and delivered or services rendered;

Sec. 101. Definitions

security agreement

means agreement that creates or provides for a security interest;

Sec. 101. Definitions

security interest

means lien created by an agreement;

Sec. 101. Definitions

setoff

a creditor's right, under certain circumstances, to keep debtor's money the creditor has in its possession in order to apply it to (i.e., offset it against) a prepetition debt owed by the debtor. [to be distinguished from recoupment]

Sec. 553

settlement payment

means, for purposes of the forward contract provisions of this title, a preliminary settlement payment, a partial settlement payment, an interim settlement payment, a settlement payment on account, a final settlement payment, a net settlement payment, or any other similar payment commonly used in the forward contract trade;

Sec. 101. Definitions

settlement payment

means a preliminary settlement payment, a partial settlement payment, an interim settlement payment, a settlement payment on account, a final settlement payment, or any other similar payment commonly used in the securities trade;

Sec. 741. Definitions for this subchapter

singular

includes the plural;

Sec. 102. Rules of construction

SIPC

means Securities Investor Protection Corporation.

Sec. 741. Definitions for this subchapter

single asset real estate

means real property constituting a single property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of a debtor and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental thereto having aggregate noncontingent, liquidated secured debts in an amount no more than $4,000,000;

Sec. 101. Definitions

small business

means a person engaged in commercial or business activities (but does not include a person whose primary activity is the business of owning or operating real property and activities incidental thereto) whose aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition do not exceed $2,000,000;

Sec. 101. Definitions

smoothdown

the right of a debtor in chapter 13 to retain property secured in favor of a creditor and pay only the secured portion, with interest, over the life of the plan

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

spendthrift provision

A trust with restrictions on alienation (i.e., restrictions on right to transfer to another) designed to protect the fund from dissipation by the beneficiary or seizure by the beneficiary's creditors.

state

includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;

Sec. 101. Definitions

standing trustee

A person appointed by the U.S. Trustee to serve as trustee for all Ch. 12 and 13 cases filed in a region.

statement of financial affairs

a document that the debtor files at the commencement of a bankruptcy case summarizing his or her financial affairs

Rule 1007

statement of intentions

a document that the debtor files at the commencement of a bankruptcy case describing what he or she intends to do with secured assets

Rule 1007(b)

statutory lien

means lien arising solely by force of a statute on specified circumstances or conditions, or lien of distress for rent, whether or not statutory, but does not include security interest or judicial lien, whether or not such interest or lien is provided by or is dependent on a statute and whether or not such interest or lien is made fully effective by statute;

Sec. 101. Definitions

stay

A restraining order arising out of the filing of a bankruptcy case. The filing of a petition "automatically stays" most actions against the debtor or the debtor's property. 11 U.S.C. § 362. This stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally cannot initiate or continue any lawsuits, wage garnishments, or even telephone calls demanding payments. Creditors normally receive notice of the filing of the petition from the clerk.

Public Information Series of the Bankruptcy Judges Division

stockbroker

means person -

(A) with respect to which there is a customer, as defined in section 741 of this title; and

(B) that is engaged in the business of effecting transactions in securities -

(i) for the account of others; or

(ii) with members of the general public, from or for such person's own account;

Sec. 101. Definitions

straight bankruptcy

Chapter 7 bankruptcy, in which debts are discharged, non-exempt property is liquidated and there is no extended payment plan involved.

strong-arm clause

the name given to the trustee's power to avoid (set aside) certain liens under 11 U.S.C. § 544(a) and other sections of the bankruptcy code. See avoid.

subordination

The act of placing a claim or security interest at a lower priority in the administration of the bankruptcy case than it would ordinarily be entitled to, where the circumstances allow it. Typically an equitable power of the bankruptcy court based on the wrong-doing of the claimholder or security interest holder.

substantial abuse

The characterization of a bankruptcy case filed by an individual whose debts are primarily consumer debts where the court finds that the granting of relief would be an abuse of chapter 7 because, for example, the debtor can pay its debts

List of Terms; Administrative Office of the United States Courts

substantial consummation

means -

(A) transfer of all or substantially all of the property proposed by the plan to be transferred;

(B) assumption by the debtor or by the successor to the debtor under the plan of the business or of the management offal or substantially all of the property dealt with by the plan; and

(C) commencement of distribution under the plan.

Sec. 1101. Definitions for this chapter

substantive consolidation

Putting the assets and liabilities of two or more related debtors into a single pool to pay creditors.

List of Terms; Administrative Office of the United States Courts

super-priority

Special priority status given to two types of claims: 1) holders of certain administrative claims who do not have adequate protection; and 2) a priority status senior to all other claims granted to a postpetition financer under 11 U.S.C. § 364(c), as consideration for the extension of credit to the estate or the debtor.

swap agreement

means -

(A) an agreement (including terms and conditions incorporated by reference therein) which is a rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option, forward foreign exchange agreement, spot foreign exchange agreement, rate cap agreement, rate floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement (including any option to enter into any of the foregoing);

(B) any combination of the foregoing; or

(C) a master agreement for any of the foregoing together with all supplements;

Sec. 101. Definitions

swap participant

means an entity that, at any time before the filing of the petition, has an outstanding swap agreement with the debtor;

Sec. 101. Definitions