Important Bankruptcy Terms And Definitions To Know

There are many important terms and definitions associated with Michigan bankruptcy that you should know if you are thinking about filing. These definitions are from Title 11, Section 101 of the United States Bankruptcy Code.

Creditor – The entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor

Custodian – a) receiver or trustee of any of the property of the debtor, appointed in a case or proceeding not under this title;

b) assignee under a general assignment for the benefit of the debtor’s creditors; or

c) trustee, receiver, or agent under applicable law, or under a contract, that is appointed or authorized to take charge of property of the debtor for the purpose of enforcing a lien against such property, or for the purpose of general administration of such property for the benefit of the debtor’s creditors

Debtor – The person concerning which a case under this title has been commenced

Domestic Support Obligation – A debt that accrues before, on, or after the date of the order for relief in a case under this title, including interest that accrues on that debt as provided under applicable non-bankruptcy law

Entity – Any person, estate, trust, governmental unit or United States trustee

Individual With Regular Income – An individual whose income is sufficiently stable and regular to enable such individual to make payments under a plan under Chapter 13

Lien – Charge against or interest in property to secure payment of a debt or performance of an obligation

Single Asset Real Estate – Real property constituting a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor who is not a family farmer 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.

Transfer – Can mean

• The creation of a lien
• The retention of title as a security interest
• The foreclosure of a debtor’s equity of redemption; or
• Each mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or an interest in property

Contact Us To Learn More

For more information about these and other bankruptcy terms and definitions, please contact the experienced attorneys at Marrs & Terry, PLLC. Located in Ann Arbor and serving individuals throughout the state, schedule a consultation with our lawyers by calling 866-665-8095.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.