Precision Starts
With the Definitions.

An election available to qualifying secured classes affecting the treatment of their claims in Chapter 11. Eligibility, timing, valuation, and plan-payment effects require analysis of § 1111(b).

Also known as section 1111(b) election

A rolling short-term projection of cash receipts, disbursements, and liquidity, usually organized by week. It is a management tool rather than a promise that projected financing or collections will occur.

Also known as 13-week cash flow · 13 week cash flow · 13-week cash forecast

A request for administrative treatment of the value of qualifying goods received by the debtor within the statutory prepetition period and sold in the ordinary course. Goods, receipt, and timing require proof.

Also known as section 503(b)(9) claim

Removal of burdensome or inconsequential property from the bankruptcy estate through the applicable statutory process. Abandonment does not necessarily extinguish liens, regulatory obligations, or ownership-related liability.

The procedure for giving notice, receiving claims, resolving objections, and determining distributions in an assignment. State law and applicable court orders determine deadlines, priorities, and creditor remedies.

A component of specified nonconsensual confirmation standards regulating junior recoveries over dissenting senior classes. Its application depends on the chapter, class, and statutory pathway.

A court's decision or obligation to refrain from hearing a matter under applicable statutory or doctrinal rules. Mandatory and discretionary abstention have different requirements.

Making an obligation due earlier than its original schedule under the contract or applicable law. Notice, cure periods, bankruptcy restrictions, and enforceability can limit a creditor's ability to accelerate.

A person obligated on an account, chattel paper, or general intangible under Article 9. In receivables financing, it is usually the business customer that owes the payment.

Amounts a business owes suppliers or other trade counterparties. Aging and criticality help assess payment pressure, but contractual terms and legal priorities still govern individual obligations.

Also known as trade payables

Amounts customers owe the business, commonly arising from sales on credit. Aging, disputes, offsets, concentration, and collection costs affect their realizable and borrowing-base value.

Also known as trade receivables

Financing supported by customer receivables. Eligibility exclusions, dilution, concentration limits, collection control, and lien priority can make available funding much lower than the ledger balance.

Also known as receivables financing · accounts receivable financing

A transfer made, or obligation incurred, with the legally required intent to hinder, delay, or defraud creditors. Proof, statutory periods, and available remedies depend on the governing law.

Also known as intentional fraudulent transfer

An informal group formed by holders of claims or interests to coordinate their position. Representation, conflicts, disclosure duties, and expense reimbursement require separate analysis.

A showing of future performance required in specified contract, utility, or other bankruptcy contexts. The governing provision and the proposed performance determine what must be established.

The disclosure standard used for a Chapter 11 disclosure statement, evaluated in the circumstances specified by § 1125. It is not a guarantee of the plan's financial success.

Protection of an entity’s interest in property against specified risks arising in a bankruptcy case. Section 361 describes possible forms; the required relief depends on the interest and circumstances.

EBITDA modified for specified items, often under a loan agreement or valuation presentation. The appropriateness, recurrence, and cash effects of add-backs require review rather than automatic acceptance.

A commonly used description for an asserted administrative expense. The request must satisfy the applicable allowance requirements; the label does not establish payment entitlement.

Loss or termination of an entity's status through an administrative process, often for filing or fee failures. Its consequences, continued powers, and reinstatement options depend on the jurisdiction; debts do not simply vanish.

An expense allowed under the applicable bankruptcy provisions, including § 503. Allowance, priority, timing, and payment are separate questions.

The percentage of eligible collateral value a lender uses in a borrowing-base calculation. Different asset types and risk conditions may have different rates and additional reserves.

A separate lawsuit within or related to a bankruptcy case, initiated by complaint for matters governed by Rule 7001. It has its own procedural framework.

A written factual statement sworn before an authorized officer. It differs in form from an unsworn declaration, although either may be permitted in specified circumstances.

An entity or person linked through specified ownership or control relationships. The Bankruptcy Code definition is specific; business use of the label does not itself establish statutory affiliate status.

Property obtained after a security agreement is signed that may fall within its collateral grant. Statutory exceptions and bankruptcy restrictions can limit the reach of the clause.

A claim recognized for bankruptcy purposes under the applicable allowance rules. Filing an asserted amount does not conclusively establish the allowed amount or payment.

A debt incurred before the transfer being examined. Whether a payment was on account of an antecedent debt is one element of the preference analysis.

A request for review of a judicial ruling by an authorized appellate court or panel. Finality, permission to appeal, and filing deadlines require issue-specific analysis.

The court order appointing a receiver or other fiduciary and defining authority, property coverage, reporting, and restrictions. Reading the actual order is essential before assuming what the fiduciary may do.

Also known as receivership order

A secured-party disposition of collateral under applicable Article 9 law following default. Notice, commercial reasonableness, proceeds allocation, and restrictions from other law remain relevant; it is not a bankruptcy sale.

Also known as UCC sale · UCC foreclosure sale

A resource or property interest of a business under the relevant accounting or legal framework. Ownership, restrictions, valuation, and liens affect whether an asset can fund operations or creditor distributions.

A bankruptcy case with assets or recoveries available for administration and potential distribution. Gross asset value alone does not establish an unsecured recovery.

The contract documenting an asset acquisition, including transferred assets, assumed liabilities, price adjustments, conditions, and closing obligations. Bankruptcy or receivership approval does not replace careful review of those terms.

Also known as APA

Financing supported by eligible business assets, commonly receivables and inventory, with availability tied to collateral formulas and monitoring. It still creates repayment obligations and may require extensive lender controls.

Also known as ABL · asset-based financing

The property administered by an assignee in an ABC. Ownership, excluded property, liens, and the governing assignment determine the estate's scope; it is not a federal bankruptcy estate.

Also known as assignment estate

The recipient and administrator of assignment property. The assignee’s powers, duties, and supervision depend on applicable law and governing instruments or orders.

Security required in some assignment proceedings to support the assignee's faithful performance. Whether a bond is required, its amount, and approval procedures depend on the governing state framework.

Also known as assignee bond

A report or accounting of assignment administration, including assets, receipts, expenses, claims, or distributions as required. The applicable law and any supervising court determine content and frequency.

Also known as assignee report

The instrument documenting an ABC transfer and relevant administrative terms. Applicable law controls required contents, execution, filing, powers, and limitations; contract language alone cannot supply missing statutory authority.

Also known as deed of assignment

A transfer of property to an assignee for creditor administration under state law. Formalities, court involvement, claims procedures, and sale powers vary by jurisdiction.

Also known as Assignment for the Benefit of Creditors · Assignments for the Benefit of Creditors · Assignment for Benefit of Creditors · ABC · ABCs

Notice of an ABC and related rights or deadlines given under the governing framework. Recipients, contents, delivery methods, and timing vary by jurisdiction.

Transfer of contractual rights and duties to another party where legally permitted. Bankruptcy can override some transfer restrictions, but § 365 contains important conditions and exceptions.

Also known as contract assignment

The business or other person transferring property through an assignment. An ABC commits property to administration for creditors under the applicable legal framework.

An obligation a buyer agrees to take on under transaction documents or is required to bear by law. It differs from a liability left with the seller, although statutory exposure can override labels.

The combined bankruptcy process of retaining a qualifying contract or lease and transferring it to another party. Cure, assurance, consent exceptions, and applicable nonbankruptcy law require review.

A debtor's authorized decision to retain an executory contract or unexpired lease under § 365. Applicable defaults generally must be cured or addressed, and future-performance assurance may be required.

Also known as contract assumption

The point when a security interest becomes enforceable against the debtor with respect to collateral. Article 9 generally requires value, rights in the collateral, and an appropriate agreement or substitute condition.

Also known as lien attachment

The statutory restraint on specified actions against the debtor or bankruptcy estate under § 362, subject to exceptions and relief. It is distinct from a discharge and from an agreed forbearance.

Also known as automatic stays

An amount deducted from a borrowing base or lending availability to address specified risks. The agreement determines reserve authority and how reserves affect the business's usable cash.

A claim invoking a statutory power to challenge a transfer, lien, or obligation. Elements, limitations, defenses, and recovery rules depend on the provision used.

Statutory authority to set aside certain transfers, obligations, or interests for the estate's benefit. Each power has distinct elements, defenses, limitation periods, and standing requirements.

Circumstances used as evidence when evaluating alleged fraudulent intent, such as certain insider dealings or concealment. No single circumstance automatically proves an avoidable transfer; the governing test matters.

A statement of assets, liabilities, and owners' equity at a particular date. Book values and classifications do not necessarily equal realizable sale proceeds or establish legal solvency.

A test comparing debts with the value of assets under the governing legal standard. Valuation assumptions, excluded assets, and the definition of liabilities can change the result.

Also known as balance sheet insolvency

A substantial final principal payment due at maturity after smaller earlier payments. A business may be current on installments yet unable to meet the balloon without a sale or refinancing.

The document or authorized mechanism used to record a plan vote. Voting eligibility, deadlines, and tabulation rules are set by the applicable law and solicitation order.

A federal legal process for administering a debtor's financial affairs through liquidation, reorganization, or another authorized chapter. The available relief depends on eligibility, the chapter, and the court's orders.

A judiciary official performing bankruptcy-administration oversight in Alabama and North Carolina districts served by that system, rather than the U.S. Trustee Program.

A panel of bankruptcy judges authorized to hear qualifying bankruptcy appeals in a participating circuit, subject to applicable consent and election rules.

Also known as BAP

Title 11 of the United States Code, the principal federal bankruptcy statute. Procedural rules, other federal statutes, and applicable nonbankruptcy law also matter.

The unit of a federal district court in which bankruptcy judges hear bankruptcy cases and referred proceedings. Jurisdiction and authority to enter a final judgment are separate questions.

The property interests brought into the estate under § 541 and other applicable provisions. Ownership and exclusions require analysis; possession alone does not establish estate ownership.

A judicial officer who presides over bankruptcy matters. The judge adjudicates disputes; the judge does not manage the debtor or serve as the trustee.

The document initiating a bankruptcy case. It identifies the debtor and requested chapter and is distinct from the schedules and other supporting filings.

Also known as petition

The exclusion for qualifying discharge-of-indebtedness income in a title 11 case under § 108. Statutory conditions and tax-attribute reduction may still apply; it does not make all bankruptcy-related transactions tax-free.

A deadline for presenting claims in the relevant proceeding. The governing statute, rules, notices, and orders determine its application and consequences.

A confirmation requirement comparing specified dissenting holders' plan treatment with the applicable liquidation benchmark. It is distinct from feasibility and class-wide voting acceptance.

Also known as best interests test

Rules governing a sale process, such as qualification requirements, deadlines, deposits, bidding increments, and auction conduct. In bankruptcy, court-approved procedures operate alongside applicable sale requirements.

Also known as bidding procedures

A business term for a lien covering broad categories of a debtor's assets. Coverage depends on the security agreement and applicable law; the label does not literally include every possible asset.

The contractual formula determining loan availability from eligible collateral, advance rates, and reserves. It is different from total book assets and can shrink quickly as collateral quality changes.

A report calculating availability under an asset-based facility using the agreed eligibility rules, rates, and reserves. Inaccurate reporting can create defaults and conceal liquidity problems.

Also known as borrowing base certificate

The sales or activity level at which defined revenues cover defined costs. Accounting, operating-cash, and fully funded debt-service break-even levels may be different.

A proposed payment to an initial bidder if a transaction closes with another buyer or another specified event occurs. Enforceability and bankruptcy approval depend on the applicable standards and transaction facts.

Also known as break-up fee

Shorter-term funding intended to cover a period before a sale, refinancing, or other expected event. Failure of the expected transaction can leave the borrower with an urgent maturity problem.

Also known as bridge loan

Income potentially arising when a debt is discharged for less than the amount owed under tax law. Exceptions, exclusions, entity classification, and attribute reduction can alter the tax result.

Also known as COD income · cancellation of debt income · canceled debt income

A defined exception to a lien, priority, or payment arrangement, often preserving a specified amount for professional fees or other administration expenses. Beneficiaries, caps, triggers, and funding must be read from the actual order or agreement.

Also known as carveout · carve out

The rate at which operations and other uses consume cash over a specified period. Gross spending and net cash burn are different measures and should be labeled clearly.

Also known as burn rate

Cash and specified equivalents in which the estate and another entity have an interest. Section 363 governs its use, including consent or court authorization.

A lending arrangement giving the lender specified control over collections and cash application. It may apply continuously or upon a trigger and can materially affect day-to-day operating liquidity.

Cash moving into and out of a business during a period. Operating, investing, and financing flows are distinct; accounting revenue and net income are not substitutes for cash receipts.

The estimated time before available liquidity reaches a specified minimum under stated assumptions. Seasonality, restricted cash, collections, and one-time costs can make a simple cash-divided-by-burn calculation misleading.

A requirement to apply specified cash to debt repayment. Its formula and exceptions determine whether apparently available cash can actually fund operations.

A financial statement explaining changes in cash through operating, investing, and financing activities over a period. It should be distinguished from a forward-looking cash forecast.

Also known as statement of cash flows · cash flow statement

The location relevant to classifying a foreign proceeding as main under Chapter 15. The statutory presumption and the facts governing the analysis should not be reduced to incorporation address alone.

Also known as COMI · centre of main interests

A filing used in some jurisdictions to terminate or cancel an entity's registration after the required process. It should not be confused with a creditor release or a bankruptcy discharge.

A formal filing used in specified jurisdictions to document corporate dissolution. Filing requirements and legal effects depend on entity type and governing law.

A federal framework for business reorganization or liquidation through a court process, with statutory rules for operations, sales, contracts, claims, and plans.

A fiduciary appointed to displace the debtor in possession when the statutory appointment requirements are met. The trustee's duties differ from those of an examiner or Subchapter V trustee.

The Bankruptcy Code chapter for qualifying family farmers and family fishermen, including certain business entities. Eligibility depends on the statutory definitions and current limits.

The Bankruptcy Code chapter addressing recognition of foreign insolvency proceedings and cross-border cooperation. Recognition does not simply convert a foreign case into a domestic Chapter 11 case.

A federal liquidation chapter under which a trustee administers estate assets. A corporation or LLC does not receive a Chapter 7 discharge.

The fiduciary administering a Chapter 7 estate, including investigating financial affairs, collecting property, and distributing available value under the applicable rules.

The Bankruptcy Code chapter addressing eligible municipalities' debts. Authorization and eligibility rules differ from those for ordinary business corporations.

Records evidencing both a monetary obligation and a security interest in, or lease of, specified goods. The applicable version of Article 9 governs classification and perfection rules.

An executive or adviser engaged to direct or coordinate restructuring work. Decision-making authority, reporting lines, professional-retention requirements, and conflicts depend on the engagement and legal context.

Also known as CRO

A right to payment or specified equitable remedy within the Bankruptcy Code’s definition. A claim can be disputed, contingent, or unliquidated.

A process for estimating specified contingent or unliquidated claims when fixing them would unduly delay administration. The statutory purpose and order determine the estimate's use.

A request challenging allowance or treatment of a filed claim. The objector must follow the applicable substantive grounds, procedures, and evidentiary rules.

Also known as claims objection

The administrative work of comparing asserted claims with records, identifying duplicates and disputes, and recording proposed treatment. Reconciliation is not a substitute for required adjudication.

Also known as claims reconciliation

A change in ownership of a claim. Bankruptcy filing, notice, and objection procedures may apply in addition to the agreement between buyer and seller.

Also known as claims transfer

The record of filed proofs of claim maintained in the case. Listing a claim in the register does not establish its allowance, priority, or payment.

A period during which claims or proceedings may continue following dissolution under applicable law. Different claims, procedures, and extensions may be governed by different rules.

Buying and selling creditor claims. Assignment terms, transfer procedures, defenses, voting eligibility, and potential disallowance can affect the acquired position.

An informal label for efforts to recover earlier payments, transfers, or distributions. The label identifies no independent cause of action; the governing avoidance, contract, or other legal theory must be established.

Case Management/Electronic Case Files, the federal judiciary's electronic case-management and filing system. Filing access and record-viewing access serve different functions.

Property subject to a security interest or other lien that supports an obligation. A collateral description, ownership analysis, and lien search help establish what actually secures a debt.

An agreement governing employment terms between an employer and a labor organization. Rejection in Chapter 11 is subject to the special requirements of § 1113, rather than ordinary contract treatment alone.

Also known as CBA

Recognition or respect given to another jurisdiction's laws and judicial acts under applicable legal principles. In cross-border bankruptcy, statutory requirements and creditor protections still control the relief a court may grant.

A tort claim meeting Article 9's business-related definition. Special collateral-description and after-acquired-property rules make a generic blanket grant insufficient for some purposes.

A collateral disposition satisfying Article 9 standards for its method, manner, timing, place, and terms. A low price alone does not resolve compliance; notice and other duties also matter.

The pleading that begins an adversary proceeding or other civil lawsuit and states the asserted claims for relief. Service and response requirements remain separate tasks.

An agreement in which participating creditors accept specified treatment of their claims, often reduced or deferred payments. Nonparticipating creditors are not automatically bound merely because others consent.

Also known as creditor composition

Resolution of a dispute through agreed terms. A bankruptcy estate's settlement may require notice and court approval under Rule 9019 and other applicable provisions.

A financing adjustment addressing concentrated exposure to one or more customers. Depending on the agreement it may reduce eligible collateral or availability; its calculation and timing should be distinguished from other exclusions to avoid double-counting.

Also known as concentration reserves

Court approval of a bankruptcy plan under the applicable statutory requirements. A feasible business proposal must also satisfy the legal confirmation standards.

The court's order confirming a plan, subject to its terms and applicable law. The order, plan, and related documents must be read together.

A description of a plan receiving the acceptances needed for the relevant confirmation pathway. The term does not mean every individual creditor consented.

A receivership sought or supported by agreement of relevant parties. Consent does not eliminate statutory requirements, judicial discretion, creditor rights, or the need for a properly scoped order.

A transfer or obligation challenge based on inadequate value and a specified financial condition, rather than proof of actual fraudulent intent. The applicable statute supplies the precise elements.

A preference defense for a transfer intended by the relevant parties to be a contemporaneous exchange for new value and that was in fact substantially contemporaneous.

Also known as contemporaneous exchange defense

A bankruptcy dispute ordinarily governed by Rule 9014 that is not handled as a separate adversary proceeding. The rules specify which litigation procedures apply.

A claim whose liability depends on an event that has not yet occurred. Contingency is distinct from uncertainty about the dollar amount or a dispute over liability.

A filing used to extend a financing statement's effectiveness when made within the applicable statutory window. A late or defective continuation may leave a security interest unperfected.

Also known as UCC continuation

An agreed ranking of obligations, payments, or lien interests. Bankruptcy enforceability and the distinction between payment and lien subordination require attention to the agreement and governing law.

A legally defined relationship to certain collateral, such as deposit accounts or investment property, that may support perfection or priority. Control is asset-specific and differs from merely monitoring the asset.

A change from one bankruptcy chapter to another. Eligibility, authority, estate consequences, and treatment of prior orders depend on the applicable conversion provisions.

A category of bankruptcy-related proceeding identified in § 157. Statutory classification and constitutional limits on final adjudication must both be considered.

A contractual promise or restriction, such as a financial-ratio requirement, reporting obligation, or limit on additional borrowing. The document defines measurement rules, exceptions, remedies, and any cure rights.

Failure to comply with a contractual covenant. Whether it is an event of default, can be cured, or permits acceleration depends on the agreement and applicable law.

Also known as covenant default

Confirmation over the dissent of an impaired class under an applicable statutory pathway and its conditions. It is not a universal power to rewrite any creditor obligation.

An eligible secured creditor's bid using its allowed secured claim to offset the purchase price at a qualifying sale. Section 363(k) permits a court to limit credit bidding for cause.

Also known as credit bidding

A holder of a claim against the debtor within the applicable statutory definition. Creditors may have very different security, priority, voting, and enforcement rights.

A group of creditors participating in restructuring oversight or negotiations. An official bankruptcy committee has statutory powers and rules; an informal out-of-court committee does not automatically share them.

Also known as creditors' committee · creditors committee · committee of creditors

The list of creditor names and addresses used for case notices, prepared in the format required by the court. Inclusion is not the same as allowance of a claim.

Also known as mailing matrix

Assets or funds retained to address creditor claims, expenses, contingencies, or disputed obligations. The required amount and release conditions depend on the process and applicable law.

A supplier described as essential to continued operations. Payment of its prepetition claim in bankruptcy requires a valid legal basis and appropriate authorization; importance alone creates no automatic payment right.

Financial-distress proceedings or coordination involving more than one country. Recognition, asset location, creditor rights, and cooperation between courts can affect the available remedies.

An arrangement coordinating courts, representatives, information, or administration across insolvency proceedings. Its authority and implementation depend on the applicable courts and legal frameworks.

Also known as insolvency protocol

A provision making a default under another identified obligation a default under the current agreement. Scope, thresholds, cure rights, and any cross-acceleration distinction are important.

Remedying a default or providing required treatment of it under the applicable contract or statutory framework. Cure issues often arise when a business seeks to assume a contract or lease.

The amount required to address applicable defaults as part of assuming a contract or lease. It may be disputed and is not necessarily the same as all amounts demanded by the counterparty.

Also known as cure amount

Current assets divided by current liabilities under the applicable financial-statement definitions. The ratio does not establish how quickly inventory or receivables can become usable cash.

A Bankruptcy Code category that includes specified receivers and assignees. A later bankruptcy can trigger turnover and accounting duties under § 543.

Dependence on a small number of customers for sales, receivables, or cash collections. Concentration can increase operational risk and reduce borrowing availability under lender eligibility limits.

Liability on a claim under the Bankruptcy Code. The amount, enforceability, security, and payment treatment of a debt require separate analysis.

Combining multiple obligations into a new financing arrangement or repayment structure. Fewer payments do not necessarily mean lower total cost, reduced principal, or release of existing guarantees.

The principal, interest, and other financing payments due over a defined period. The exact components used for a covenant or forecast should follow the governing definition.

An agreement to resolve an obligation on specified terms, potentially for less than the asserted balance. Written scope, releases, payment conditions, lien treatment, and tax consequences require separate attention.

A transaction converting or exchanging debt claims into ownership interests. Valuation, consent or plan authority, securities rules, taxes, and the new governance structure require review.

Also known as debt-to-equity swap

A ratio comparing defined earnings or cash available for debt service with defined debt-service obligations. Formulas differ by lender and context; use the governing covenant definition.

Also known as DSCR · debt service coverage ratio

In a bankruptcy case, the person or entity concerning which the case has been commenced. In ordinary credit usage, a party owing an obligation; the context determines the meaning.

A contractual restriction on the exposure to one account debtor or related group that can count in a financing calculation. The agreement defines the percentage or amount, denominator, aggregation, exclusions, and approved exceptions; it is not a universal legal percentage.

Also known as debtor concentration limits · concentration cap · customer concentration limit

A Chapter 11 debtor generally continuing to operate and administer estate property, with statutory duties, court oversight, and limits on transactions.

Also known as DIP · debtors in possession · debtor-in-possession

A written factual statement made under the applicable penalty-of-perjury requirements. Its admissibility and sufficiency depend on the issue and governing evidence rules.

A real-property security instrument using a trustee structure in jurisdictions that recognize it. Enforcement procedures and borrower protections depend on the governing state's law.

Acceptance attributed by statute without soliciting a vote from an unimpaired class. It is distinct from obtaining actual ballots from an impaired accepting class.

The statutory treatment of a class receiving or retaining no property under a plan on account of its claims or interests. The class is deemed not to accept.

An increased interest rate triggered by specified defaults. Whether it accrues or is recoverable depends on the documents, applicable law, and any bankruptcy treatment.

A judgment entered after a party fails to plead or otherwise defend as required. Entry of default and entitlement to the requested judgment are separate procedural questions.

The portion of a secured obligation remaining after the relevant collateral value or proceeds are applied. Recourse, valuation, and bankruptcy rules affect whether and how it is allowed.

An agreement establishing a bank's undertaking to follow a secured party's instructions concerning a deposit account without further debtor consent. Control, priority, and access to cash depend on the agreement and applicable law.

Also known as DACA · account control agreement

Sworn testimony taken before trial or hearing under the applicable procedural rules. Notice, subpoenas, objections, and use of the testimony have distinct requirements.

In receivables analysis, reductions in invoice realizations from credits, returns, discounts, disputes, or similar adjustments. In ownership analysis, the same word can refer to a reduction in an investor's percentage interest.

Financing obtained by a debtor in possession under the applicable bankruptcy provisions and orders. Priority, liens, fees, milestones, and adequate protection may be material terms.

Also known as debtor-in-possession financing

Statutory relief from covered liabilities, subject to the relevant chapter and exceptions. A company’s case closing, dissolution, and lien releases have different legal effects.

The statutory restraint on collection of debts covered by a discharge under § 524. It is distinct from the automatic stay and does not automatically eliminate valid liens.

Information supplied for an informed judgment about a Chapter 11 plan under the applicable approval requirements. Subchapter V does not always require a separate disclosure statement.

Procedures for obtaining information and evidence in litigation, including documents, testimony, and admissions. An adversary proceeding and a Rule 2004 examination do not use identical rules.

A person satisfying the Bankruptcy Code's independence criteria, including restrictions concerning certain interests and relationships. Professional employment requires the applicable conflicts and disclosure analysis.

Termination of a bankruptcy case before its administration is completed through the chapter's ordinary process. Dismissal and discharge are different legal events.

A defined income concept used in specified bankruptcy plan provisions, including Subchapter V. The applicable statute determines deductions and the period relevant to creditor treatment.

A claim contested as to liability, amount, or another material issue. Describing a claim as disputed does not itself resolve the dispute.

Money or other consideration held pending resolution of disputed claims. The governing plan or order determines funding, release conditions, and the consequences of an insufficient reserve.

Also known as disputed claims reserve

A legal step in ending an entity and winding up its affairs under entity law. It does not itself erase debts, remove liens, or release guarantees.

A transfer of company value to equity holders. Solvency restrictions, creditor provisions, priority rules, and potential recovery of improper distributions must be considered before distributing remaining assets.

The order in which available value is allocated among claims and interests under the governing documents and law. It is a framework, not a promise of available recovery.

Also known as waterfall

The court's chronological record of filings and events in a case or proceeding. A docket entry and the underlying filed document are distinct sources of information.

A forecast scenario reflecting specified adverse assumptions. It should identify its assumptions and funding consequences rather than imply that it captures every possible risk.

Earnings before interest and taxes. Definitions and adjustments should be identified when comparing borrowers or evaluating covenants; the measure does not itself show cash available for debt repayment.

Earnings before interest, taxes, depreciation, and amortization. It is not cash flow, and adjusted versions can differ materially; required debt payments, working capital, and capital spending still affect liquidity.

The date specified conditions are satisfied and a plan or agreement becomes operative. It can differ from the entry date of the confirmation or approval order.

Receivables qualifying for financing under the loan's specific rules. Past-due, disputed, affiliate, foreign, or concentrated accounts may be excluded or subject to limits depending on the agreement.

Priority for qualifying contributions to employee benefit plans under § 507, subject to its conditions and limits. Benefit-plan liabilities may also arise under other federal or state laws.

The value attributed to a business's operating enterprise under a stated valuation method. It differs from the residual value of equity after relevant debt, cash, and other adjustments.

Court-authorized placement of specified U.S. assets or their administration with a foreign representative or another person under Chapter 15. Statutory safeguards and creditor protection requirements remain relevant.

A term commonly describing inability to pay obligations as they become due, rather than a simple asset-minus-liability calculation. The precise test depends on the applicable law.

Subordination of all or part of an allowed claim under equitable principles and the applicable statutory framework. It changes payment rank; it is not the same as disallowance.

The value of collateral above the obligations and interests relevant to the analysis. A cushion may inform adequate protection, but valuation, senior claims, and changing market conditions matter.

An ownership interest within the Bankruptcy Code's definition, such as specified shares or partnership interests. Equity generally occupies a different position from creditor claims.

A holder of an equity security in the debtor. Ownership can confer participation rights without creating a right to a distribution ahead of creditors.

The value attributable to ownership interests after the relevant claims and valuation adjustments. Enterprise value and equity value should not be used interchangeably in a distressed sale or plan analysis.

For Chapter 15 purposes, a place of operations where the debtor conducts nontransitory economic activity. Its existence can support classification of a foreign proceeding as nonmain.

A contractually specified event that may activate remedies after any required notice or cure period. A missed payment is one example; reporting, insolvency, and cross-default provisions may also matter.

A court-appointed investigator in Chapter 11 whose scope and duties depend on the statute and appointment order. An examiner ordinarily does not replace management as an operating trustee.

An offer to replace existing debt or securities with new instruments on specified terms. Participation thresholds, securities requirements, covenants, and treatment of nonparticipants affect execution.

Property expressly left outside a proposed transfer. Sale documents should identify exclusions and related rights clearly so that the operating business and retained estate can be administered after closing.

The period during which only the debtor may file a Chapter 11 plan or seek the required acceptances, subject to statutory limits and court modification. Subchapter V has a different framework.

Also known as exclusivity

A provision limiting specified liability for conduct connected to a case or restructuring. It differs from a release of claims, and permissible scope depends on governing law.

The legal process of enforcing a judgment against property under applicable procedures. Available methods and protections vary, and an automatic stay or other court restraint may prevent enforcement.

Also known as writ of execution

A contract with material performance obligations remaining, as determined under applicable bankruptcy law. Section 365 governs assumption, rejection, and assignment, with conditions and exceptions.

Financing intended to fund a business as it leaves bankruptcy or completes a restructuring. Availability depends on closing conditions and the definitive financing terms.

Payment of specified transaction or bidder expenses under agreed terms or a court order. Approval, caps, documentation, and triggering conditions determine whether payment is actually due.

A financing arrangement involving the transfer of receivables to a factor. Recourse, collection responsibilities, reserves, fees, and legal characterization depend on the agreement and applicable law.

Also known as invoice factoring

A statutory confirmation standard applied to specified nonaccepting impaired classes. Its requirements differ by class and confirmation pathway; ordinary fairness language is not a substitute.

The confirmation inquiry into whether a plan is likely to be followed by further liquidation or reorganization, except as the plan proposes. Evidence and statutory context determine the analysis.

A request for allowance of professional compensation or expense reimbursement. Required support, notice, review, and court approval are governed by the applicable statute, rules, and orders.

A person owing legally recognized duties in administering another's interests or property. The beneficiaries, standard of conduct, and remedies depend on the specific office and governing law.

A duty arising from a legally recognized position of trust, such as an administrator's duties concerning estate property. Its scope must be determined in context rather than assumed from financial distress alone.

A closing report of receipts, disbursements, property disposition, claims, and other required administrative matters. Approval and release procedures depend on the applicable proceeding.

An order closing a fully administered Chapter 11 case under Rule 3022. Closure does not necessarily mean that every plan payment or related obligation has ended.

An order treated as final for the relevant procedural purpose. Finality for appeal can be technical and is not established simply by calling a document a final order.

A return reporting the final relevant tax period when a business closes under the applicable tax rules. Closing can require multiple filings; marking one return final does not settle every tax obligation.

Changes to a company's funding and obligations, such as extending maturities, reducing debt, or exchanging debt for equity. Legal effectiveness depends on required consents and the transaction or court process used.

A public record, commonly a UCC-1, providing notice of a claimed security interest. Filing alone does not establish attachment, the amount owed, or priority over every competing interest.

Also known as UCC-1 · UCC financing statement

A lien described as ranking ahead of other liens on specified collateral. Actual priority depends on enforceability, perfection, applicable law, and any intercreditor agreement.

Also known as first-priority lien

Requests filed near the start of a business bankruptcy to address urgent operational and administrative needs. Relief depends on the governing law, notice, evidence, and court orders.

Also known as first day motions

Goods sufficiently connected to real property that a real-property interest can arise under applicable law. Fixture filings and priority rules may differ from ordinary equipment financing.

An agreement to refrain from exercising identified remedies for a period or while conditions are met. The underlying debt and default may remain.

Also known as forbearance agreement

An estimate based on a compressed or constrained sale process. It depends on stated conditions and does not establish a guaranteed auction price or net creditor recovery.

Also known as FLV

A process for enforcing a lien against collateral, often real property. Judicial and nonjudicial procedures differ, and an applicable automatic stay may prevent enforcement without relief.

A recognized foreign proceeding pending in the country where the debtor has its center of main interests. Main-proceeding recognition triggers specified Chapter 15 consequences.

A qualifying foreign proceeding pending in a country where the debtor has an establishment. Recognition and available relief differ from those for a foreign main proceeding.

A collective judicial or administrative proceeding in another country meeting the Bankruptcy Code's definition, including specified interim proceedings. Not every foreign lawsuit or collection action qualifies.

A person or body authorized in a foreign proceeding to administer reorganization or liquidation or to act as its representative. Status and evidence are relevant to a Chapter 15 recognition petition.

A transfer or obligation potentially avoidable under rules involving specified intent or inadequate value with additional financial conditions. A criminal fraud conviction is not a prerequisite to every such claim.

Also known as fraudulent conveyance

A nonstandardized measure commonly starting with operating cash flow less capital expenditures. Adjustments differ, so restructuring analysis should state the formula and reconcile it to underlying financial statements.

Also known as FCF

A sale authorized to transfer assets free of specified interests when the governing legal requirements are met. It does not mean that every liability, regulatory obligation, or third-party right disappears.

Also known as free and clear sale

A collection process directed at property or obligations held by a third party, such as a business bank account or receivable. Procedure, exemptions, priority, and any bankruptcy restraint depend on the governing law.

A transfer of a debtor's property to an assignee for administration for creditors under the applicable state framework. Requirements, exclusions, and legal effects differ across jurisdictions.

Also known as general assignment for the benefit of creditors

An Article 9 residual category of personal property that excludes specified other collateral categories. Many contractual and intellectual-property rights require analysis within this category and other governing law.

A receiver with broader administrative authority as defined in the governing jurisdiction. The terminology and powers vary; a title does not establish nationwide authority over all assets.

An unsecured claim lacking a higher statutory payment priority. Its distribution depends on available value, classification, and the governing plan or liquidation rules.

A sale of an operating business or functioning assets as a continuing enterprise. The transaction may preserve operations while the seller’s legal entity winds down.

Value based on continued operation of a business rather than piecemeal disposition. Assumptions about funding, contracts, employees, demand, and execution determine whether that value is achievable.

A purchaser satisfying the relevant good-faith standard. Section 363(m) can protect an authorized sale's validity on appeal in specified circumstances, but it is not blanket immunity from all disputes.

A statutory defense or protection available to a qualifying recipient of a challenged transfer. The requirements and available protection differ between avoidance and recovery provisions.

Revenue less cost of goods or services sold, often expressed as a percentage of revenue. It measures a different level of profitability from operating margin, net income, or free cash flow.

A separate undertaking concerning another obligor’s debt or performance. Its scope, conditions, defenses, and release depend on the agreement and governing law.

Also known as guaranty · guaranties

A party undertaking specified responsibility for another party's debt or performance. A company restructuring does not automatically release a guarantor's separate obligations.

A legally effective release of a guarantee obligation within its stated scope. Debt settlement, collateral surrender, or a borrower's bankruptcy does not alone establish that the guarantor has been released.

A creditor that declines a proposed consensual restructuring. Unless a valid legal mechanism binds it, the creditor generally retains its own contractual and enforcement rights.

A class whose rights are altered within the applicable statutory framework. Impairment affects voting and confirmation analysis.

A statement of revenue, expenses, and resulting profit or loss over a period. Accrual accounting can show income before cash collection or expenses before payment.

Also known as profit and loss statement · P&L

A statutory concept concerning preservation or realization of a protected property's or secured claim's value in specified bankruptcy contexts. It is not satisfied merely by asserting comparable economic value.

An early Chapter 11 oversight meeting with the U.S. Trustee's office concerning operations, reporting, insurance, cash management, and case requirements. It differs from the meeting of creditors.

Also known as IDI

The first transferee for purposes of the applicable recovery analysis. Identifying that party requires more than locating the first name in a payment chain; legal tests concerning dominion or control may apply.

A person or entity with a relationship to the debtor that falls within statutory examples or applicable case-law tests. Insider status can affect transfer review, voting, and transaction scrutiny.

A financial condition with context-specific definitions. Bankruptcy, transfer law, and cancellation-of-debt tax rules may use different tests.

A tax exclusion for qualifying cancellation-of-debt income to the extent permitted by the tax-law insolvency rules. Its measurement and taxpayer-level application differ from ordinary business or bankruptcy insolvency concepts.

An approved arrangement to pay tax liabilities over time under specified terms. Interest, penalties, liens, collection restrictions, and default consequences depend on the governing program and agreement.

A contract permitting use of specified intellectual property. Bankruptcy treatment depends on the rights involved, the debtor's role, applicable law, and protections such as § 365(n).

Also known as IP license

An agreement regulating rights among creditors, often concerning lien priority, payment turnover, enforcement control, or standstill periods. Its enforceability and bankruptcy effect depend on its terms and governing law.

A distribution made before an estate's administration is complete. It generally requires adequate provision for expenses, disputed claims, priorities, and other remaining obligations under the governing framework.

An order granting limited or temporary relief pending further proceedings. Its duration and conditions must be read from the order rather than assumed from its label.

A bankruptcy petition filed by qualifying creditors or other authorized parties under § 303. Creditor eligibility, numerosity, disputed claims, and grounds for relief require specific analysis.

A contract provision triggered by insolvency, financial condition, or a bankruptcy-related event. Bankruptcy law restricts enforcement of many such provisions, subject to important exceptions.

Procedural coordination of related bankruptcy cases, often through common notices and hearings. It does not by itself combine assets and liabilities into one estate.

A court's formal determination of specified rights or obligations in a proceeding. Obtaining a money judgment is different from collecting it or establishing a lien against particular assets.

A lien obtained by judgment, levy, sequestration, or another legal or equitable process. Its existence and priority depend on the relevant process and applicable law.

Also known as judgment lien

A lien subordinate to another interest in the same collateral. It may have value only after senior secured obligations and relevant costs are satisfied.

Also known as second lien · subordinate lien

A court's legal authority to hear a category of case or dispute. Bankruptcy jurisdiction does not resolve every question about venue, standing, or power to enter final judgment.

A statutory limit on an allowed landlord claim for damages resulting from termination of a real-property lease. The calculation and treatment of particular charges require legal analysis.

An issuer's undertaking to honor a complying presentation under the applicable credit terms. The issuer's obligation is generally independent of the underlying business dispute; reimbursement and collateral obligations remain separate.

A ratio comparing debt with a specified earnings, cash-flow, capital, or asset measure. Because definitions differ, a leverage number is meaningful only with its formula and measurement period.

An obligation of a business under the relevant accounting or legal framework. Recorded liabilities may not capture every contingent claim, guarantee, tax exposure, or future wind-down cost.

An interest in property securing payment or performance. Its existence, perfection, priority, and release must be distinguished from the underlying obligation.

The relative ranking of competing interests in collateral or proceeds. Filing dates are one factor; control, special statutory rules, subordination, and other exceptions can change the result.

A search of relevant filing and public-record systems for recorded claims against a debtor or assets. Results depend on jurisdictions, names, record types, and timing; a clean search is not a guarantee of clear title.

Also known as UCC search

A receiver appointed for a restricted purpose or defined property under applicable law. Powers may be narrower than those of a general receiver and remain subject to the appointment order.

A claim with an amount fixed or determinable under the applicable standard. A liquidated amount can still be disputed or subject to defenses.

A bankruptcy plan providing for asset realization, distributions, and completion of affairs rather than continuation of the debtor's existing business. Chapter 11 permits qualifying liquidation plans.

Also known as plan of liquidation

A trust established to hold and administer assets or claims and distribute proceeds, often under a confirmed plan. The trust documents and order define its powers and beneficiaries.

Realization of assets for distribution and completion of affairs. Net proceeds depend on liens, costs, claim priorities, and reserves.

Estimated proceeds from disposing of assets under specified conditions. Timing, marketing, buyer demand, liens, costs, and required reserves can create a large gap between gross value and creditor recovery.

The ability to access cash or readily available funding to meet obligations when due. Positive asset value or accounting profit does not necessarily establish sufficient liquidity.

A comparison of loan exposure with the value assigned to collateral. The valuation basis, included debt, costs, and timing determine what the ratio actually measures.

Also known as LTV · loan to value ratio

Court-specific procedural rules supplementing national rules within permitted limits. Standing orders and judge-specific procedures may also affect practice.

Also known as local rules

A collection arrangement directing customer payments to a designated account or processing service. Whether the business can freely use collections depends on account control and financing agreements.

An equitable doctrine that may require a creditor with access to multiple funds to seek payment in a way that preserves another creditor's access. Availability and limits depend on applicable law.

Also known as marshalling

A workforce reduction meeting the relevant statutory criteria. Headcounts, percentages, locations, aggregation periods, and exclusions must be evaluated under the applicable federal and state laws.

An agreement to move a debt's final payment date. It may provide time but does not necessarily reduce principal, interest, collateral requirements, or operating losses.

Also known as extend and amend · amend and extend

A facilitated negotiation in which a neutral helps parties seek an agreement. The mediator ordinarily does not impose the result; authority to settle and any required court approval remain necessary.

The examination and meeting required by § 341, commonly called the 341 meeting. It is distinct from a court hearing before the bankruptcy judge.

Also known as 341 meeting · section 341 meeting

A commercial financing arrangement commonly structured around the purchase of future business receipts. Whether it is treated as a sale or loan depends on its terms and applicable law; repayment mechanics, reconciliation, guarantees, and total cost require review.

Also known as MCA

A periodic disclosure of a debtor's financial and operating activity during a bankruptcy case. Required forms and reporting instructions differ for small business, Subchapter V, and other Chapter 11 cases.

Also known as MOR

A consensual security arrangement encumbering real property to secure an obligation. Creation, recording, priority, and foreclosure are principally governed by the applicable real-property law.

A request asking a court to grant identified relief. Bankruptcy motion practice involves the applicable rules, notice requirements, evidence, and an opportunity to oppose where required.

The accounting profit or loss remaining after the relevant revenues and expenses for a period. It differs from cash flow and does not by itself establish the ability to make debt payments.

Also known as net profit

A tax-law loss measure potentially usable in other tax periods under applicable rules. Carryover limits, ownership changes, cancellation-of-debt adjustments, and entity classification can restrict its value.

Also known as NOL

Estimated orderly liquidation proceeds after the expenses included in the valuation methodology. It is often used in asset-based lending, but the lender's eligibility rules and advance rates still control availability.

Also known as NOLV

Current assets less current liabilities under a specified definition. Transaction and lending documents often exclude or adjust particular items, so the agreed definition matters as much as the label.

Also known as NWC

A term for fresh consideration, with different meanings in preference defenses and plan-confirmation disputes. The governing provision and transaction determine the required type and timing of value.

A term used in disputes over whether new contributions can permit old equity participation despite absolute-priority concerns. The doctrine's availability and limits require current controlling case-law analysis.

Also known as new value exception

A case in which no funds are expected to be distributed to general unsecured creditors after administration. It does not necessarily mean the debtor owns literally no property.

Also known as no asset case

A plan confirmed through an authorized pathway despite specified class dissent. The proponent must still satisfy the applicable confirmation conditions.

A bankruptcy-related proceeding outside the statutory core category. The bankruptcy court's role and authority to enter final judgment depend on applicable law and consent.

Also known as non-core proceeding

A person or entity that is not the debtor in the relevant bankruptcy case. An affiliate or guarantor does not become a debtor merely because a related business files.

Also known as non-debtor

A Bankruptcy Code phrase allowing the notice and hearing opportunity appropriate to the circumstances. An actual hearing is not required in every instance if the statutory conditions are satisfied.

A filing identifying a lawyer's or party's participation and contact information. Requests for notices and eligibility to receive particular notices are governed by the applicable rules.

A formal challenge to requested relief, a claim, or another proposed action. Its contents, service, and deadline depend on the proceeding and court orders.

A proposed settlement of tax liabilities under a taxing authority's statutory program. Eligibility, financial disclosure, acceptance standards, and continued compliance requirements apply; an offer is not an automatic reduction.

Also known as OIC

A committee appointed under § 1102 to represent unsecured creditors' collective interests in an eligible Chapter 11 case. Appointment, professional employment, and duties follow the statutory framework.

Also known as unsecured creditors' committee · UCC committee

Changes to the way a business operates, such as closing facilities, revising product lines, or improving collections. The objective is sustainable performance; contracts, employee obligations, and implementation costs remain relevant.

The event establishing relief under a Bankruptcy Code chapter. A voluntary filing generally constitutes the order; a contested involuntary petition may require a separate adjudication.

An estimate based on a disposition conducted within a defined, reasonably orderly marketing period. The appraisal's assumptions must be distinguished from a continuing-business valuation or a forced sale.

Also known as OLV

A preference defense for qualifying payments of debts incurred in the ordinary course, subject to the statutory standards concerning payment practices or ordinary business terms.

Also known as ordinary course defense

A negotiated adjustment of a business's finances or obligations outside a bankruptcy case. It binds participating parties through enforceable arrangements, rather than automatically imposing a collective stay or discharge.

Borrowing above the applicable borrowing-base or facility limit. It may be expressly permitted for a period or constitute a default requiring repayment or other corrective action.

A competing bid exceeding an existing offer under the sale process's rules. Nonprice terms, contingencies, execution risk, and required increments can matter as much as the headline price.

A creditor whose collateral value exceeds its allowed secured debt under the relevant standard. Section 506(b) can affect interest, fees, and costs, subject to its conditions.

Public Access to Court Electronic Records, the federal judiciary's electronic court-record access service. Availability, access restrictions, and charges are governed by the service and court policies.

A participant entitled to appear or be heard on a particular bankruptcy issue. Section 1109 provides examples in Chapter 11; standing still depends on the matter and applicable law.

Also known as parties in interest

A report grouping unpaid supplier obligations by age or overdue status. It helps identify payment backlogs, threatened supply interruptions, and the assumptions needed for a credible cash forecast.

Also known as accounts payable aging · AP aging

The formal ending of a pension plan under the applicable benefits-law framework. Distress termination of a covered defined-benefit plan involves specific conditions and PBGC procedures, not merely a decision to close the company.

The steps that make an attached security interest effective against specified competing claimants. Filing, possession, control, or automatic perfection may apply depending on the property and governing law.

The date a bankruptcy petition is filed. It is a reference point for estate property, claim classification, and many lookback periods, subject to the particular governing provision.

Also known as filing date

A person designated to implement specified plan tasks after confirmation, such as reconciling claims or making distributions. Authority comes from the plan, orders, and governing documents.

A proposed change to a bankruptcy plan before or after confirmation under the applicable statutory requirements. Different stages and chapters impose different limits.

A proposal for restructuring claims, interests, operations, and other matters under the governing bankruptcy chapter. It becomes binding through the required confirmation and effectiveness process.

Also known as reorganization plan

A party authorized to propose a plan. The debtor's exclusivity rights and the applicable chapter determine when other parties may file competing plans.

A shutdown meeting the applicable employment-law definition and thresholds. Federal WARN and state requirements can differ, so an operational closure label does not decide whether notice obligations apply.

A qualifying lien dependent on possession of goods, often securing services or materials supplied in the ordinary course. Statutory terms and Article 9 priority rules determine its effect.

A required report concerning administration after plan confirmation, such as distributions and remaining case activity. Confirmation does not itself end all reporting duties; applicable forms and instructions must be checked.

Also known as PCR · postconfirmation report

Occurring after the bankruptcy petition was filed. Postpetition timing alone does not establish that an expense is allowed or entitled to administrative priority.

Also known as post-petition

The power under § 549 to avoid specified unauthorized transfers of estate property after the case begins. Statutory exceptions and separate recovery requirements must also be considered.

A transfer potentially avoidable under § 547 if its elements are met and no applicable defense protects it. Payment of a valid debt can still require preference analysis.

The statutory prepetition period during which a transfer may be examined as a preference. Timing alone does not make a payment avoidable; all required elements and available defenses must be considered.

Also known as preference lookback period

A provisional remedy securing specified property before final judgment when the applicable legal requirements are satisfied. It requires a legal basis and appropriate process; financial distress alone does not authorize seizure.

A case prepared through significant prepetition negotiations, often with a restructuring support agreement, but without necessarily completing prepetition plan voting.

Also known as pre-negotiated bankruptcy · prearranged bankruptcy

A bankruptcy strategy in which plan votes are solicited before filing, subject to applicable disclosure and solicitation rules. Prepetition agreement does not eliminate confirmation requirements.

Also known as prepackaged plan · prepack

Occurring before the bankruptcy petition was filed. Whether an obligation is treated as prepetition can require analysis of when the relevant claim arose.

Also known as pre-petition

The automatic preservation for the estate's benefit of certain avoided transfers or void liens under § 551, limited to property of the estate. It prevents junior interests from automatically receiving the entire benefit.

A bankruptcy financing lien authorized to rank ahead of or equally with an existing lien under § 364(d). The debtor must meet statutory requirements, including adequate protection of the affected interest.

A claim entitled to a specified rank or treatment under the relevant law. Priority is distinct from secured status, allowance, and ultimate recovery.

An allocation in proportion to eligible claim amounts within the relevant pool or class. It does not mean all creditors across different priorities receive the same percentage.

Also known as pro rata

Property or value derived from collateral, as defined by applicable law. Whether a lien continues in proceeds can depend on identification, tracing, perfection, and bankruptcy limitations.

Compensation charged by advisers such as attorneys, accountants, and financial professionals. In bankruptcy, estate-paid compensation may require authorized employment, disclosures, applications, and court approval under the relevant provisions.

Also known as professional fee

The process of employing professionals in a bankruptcy case under applicable statutory and disclosure requirements. Engagement by management alone does not necessarily authorize payment from the estate.

A filed statement asserting a creditor’s claim with the required support. Requirements and deadlines depend on the proceeding, rules, and court orders.

Also known as proofs of claim

Temporary relief available while a Chapter 15 recognition petition is pending, subject to statutory requirements. Its duration and scope are limited and differ from relief following recognition.

The narrow Chapter 15 provision permitting refusal of action that would be manifestly contrary to U.S. public policy. It is not a general invitation to reject foreign law merely because procedures differ.

Also known as public policy exception

A security interest securing qualifying purchase-money obligations, such as financing an asset's acquisition. Special priority may require additional timing, notice, and tracing conditions.

Also known as PMSI

A bid satisfying the sale process's specified eligibility and submission requirements. Qualification permits participation; it does not establish that the offer is the highest or otherwise best available.

Periodic statutory fees payable in qualifying Chapter 11 cases under § 1930. The amount and applicable exemptions must be checked; Subchapter V treatment differs, and confirmation alone does not necessarily end the obligation.

Also known as U.S. trustee fees

A value standard used in specified fraudulent-transfer provisions. The analysis is transaction-specific; neither a nominal purchase price nor a fairness label establishes compliance by itself.

A change in a company's mix of debt and equity funding. Ownership dilution, creditor consent, solvency, and transaction expenses can materially affect the result.

A report grouping unpaid receivables by how long they have been outstanding or overdue. It helps evaluate collections, disputes, eligibility exclusions, and concentration of credit risk.

Also known as accounts receivable aging · AR aging

A person appointed by a court to administer designated property or a business within the appointment's scope. A receiver's duties and powers arise from applicable law and court orders.

A court-authorized instrument evidencing financing or obligations incurred in a receivership where permitted. Priority and payment rights depend on governing law, notice, and the authorizing order.

Also known as receiver certificate

A process in which a court-appointed receiver administers designated property under applicable law and the appointment order. Powers and creditor protections vary.

Property placed within a receiver's administration under applicable law and the appointment order. Entity ownership, liens, third-party interests, and territorial limits require separate analysis.

A disposition by a receiver pursuant to applicable law and court authority. Notice, confirmation, lien treatment, and transfer powers depend on the jurisdiction and the relevant orders.

A restraint on specified actions arising under an applicable receivership statute or court order. It should not be assumed to have the nationwide scope or exceptions of the federal automatic stay.

A seller's asserted right to recover qualifying goods delivered to an insolvent buyer under applicable law. Bankruptcy imposes specific conditions, and prior secured interests may substantially limit practical recovery.

A court's determination under Chapter 15 that a foreign proceeding satisfies the applicable requirements. Recognition is distinct from granting every form of requested relief or enforcing every foreign order.

A doctrine addressing opposing obligations arising from the same transaction. It is distinct from setoff, and the governing court's test can materially affect its availability.

Obtaining property or its value following avoidance, as authorized by § 550. Avoidance and recovery are separate issues; transferee status and statutory defenses can affect collection.

The amount recovered on a claim expressed relative to a specified claim amount. Timing, payment form, costs, interest, and valuation assumptions should be identified when comparing recoveries.

Replacing or restructuring existing financing with new financing. Availability, payoff amounts, fees, collateral releases, covenants, and the new payment burden determine whether it improves the business's position.

Treatment of an executory contract or unexpired lease under the Bankruptcy Code’s breach framework. It is not a universal erasure of all associated property rights.

A claim arising from rejection of an executory contract or lease. Rejection generally constitutes a breach; timing rules and statutory caps can affect the claim's treatment and amount.

A court order terminating, modifying, conditioning, or annulling the automatic stay for specified purposes. It does not necessarily decide the underlying debt or the validity of a lien.

Also known as stay relief · relief from the automatic stay

Sending removed litigation back to the court from which it came. Bankruptcy-related remand can involve statutory and equitable considerations.

Transfer of qualifying litigation from another court into the federal system. Bankruptcy removal and later remand are governed by distinct standards and procedures.

Restoring a closed bankruptcy case to the court's active docket for a purpose authorized by § 350. Reopening does not itself decide the merits of the requested relief.

A lien granted on other or later property, often as adequate protection for a creditor's existing interest. Its scope, priority, and limitations come from the applicable court order.

Taking possession of collateral following default where permitted. Article 9 allows specified nonjudicial recovery only without a breach of the peace; bankruptcy and other laws may impose additional limits.

New funding intended to support a distressed business or restructuring. Cost, repayment capacity, collateral priority, required consents, and the alternative if funding fails are central considerations.

A statement preserving identified rights or defenses while taking another action. Its effectiveness depends on wording, conduct, applicable law, and any governing order.

An agreement among specified stakeholders supporting a proposed restructuring on stated terms and milestones. It does not itself confirm a plan or bind nonsignatories.

Also known as RSA · plan support agreement

A payment or arrangement concerning professional services whose ownership and application depend on its form, engagement terms, and governing law. Bankruptcy disclosure and approval requirements may apply even to funds paid before filing.

Covered payments for retired employees and certain dependents addressed by § 1114. Modification in Chapter 11 involves specific representation, negotiation, and court requirements.

The transfer or return of estate property to a reorganized debtor or another designated person under the applicable plan and confirmation framework.

A financing arrangement allowing borrowing, repayment, and reborrowing within agreed limits and conditions. Actual availability can depend on collateral, covenants, defaults, and lender commitments.

Also known as revolver · revolving line of credit

A right to recover collateral before the statutory cutoff by satisfying required obligations and expenses. The amount required and availability depend on the applicable legal framework.

Also known as redemption right

A financing structure that pays or converts specified prepetition debt into postpetition financing obligations. Bankruptcy approval, resulting priority changes, lender terms, and objections require particular scrutiny.

Also known as rollup · roll up

A bankruptcy examination into matters within Rule 2004's scope, including financial affairs and estate administration. Authorization, document production, and limits require separate analysis.

Also known as 2004 examination

A court order approving a proposed asset sale and defining the authorized transaction's terms. Its findings, exceptions, and appeal provisions must be reviewed rather than inferred from a marketing summary.

Commercial financing with payments tied to sales or revenue, including arrangements covered by particular state disclosure laws. Contract terms, reconciliation mechanisms, and legal characterization determine the actual obligations.

Also known as revenue-based financing

A debt listed in the debtor's bankruptcy schedules. Whether the creditor must also file a proof of claim depends on the chapter, how it was scheduled, and applicable orders.

Required disclosures of the debtor's property, obligations, and other financial information. Incomplete or inaccurate schedules can affect claims treatment and case administration.

Also known as bankruptcy schedules

A bankruptcy sale of estate property under § 363, often used to transfer business assets before plan confirmation. Approval, notice, lien treatment, and contract transfers involve distinct requirements.

Also known as 363 sale

A limitation on the use of specified tax losses and other attributes after a qualifying ownership change. Bankruptcy-related exceptions and special rules are technical and not automatic.

Also known as 382 limitation

A claim supported by a qualifying interest in collateral. Bankruptcy valuation and treatment are governed in part by § 506 and other applicable provisions.

A person holding a security interest or another interest included in Article 9's definition. The secured party may act through a collateral agent under the transaction documents.

An agreement that creates or provides for a security interest. Its collateral description and other enforceability requirements matter separately from the public financing statement.

An interest in property securing payment or performance of an obligation. Attachment, perfection, priority, and enforcement are distinct questions; signing a loan agreement does not resolve all of them.

Testing how a forecast or valuation changes when selected assumptions vary. It helps expose dependence on collections, margins, sale timing, financing, or other uncertain inputs.

The legally required delivery of initiating papers to a party. Actual knowledge of a case does not necessarily cure defective service.

Offsetting mutual obligations under applicable law. Bankruptcy generally preserves qualifying rights subject to restrictions; exercising setoff and establishing the right are separate questions.

Also known as set-off

A defined category involving qualifying real property and limited business activity. Special stay-relief provisions can apply; the label does not cover every debtor owning one building.

Also known as SARE

A Chapter 11 case involving a qualifying small business debtor that has not elected Subchapter V, subject to the statutory definition and additional procedures.

A debtor meeting the Bankruptcy Code's business, debt, affiliation, and exclusion criteria. The label has a statutory meaning and is not synonymous with every small company.

Seeking votes to accept or reject a plan. The permitted timing, disclosures, recipients, and methods depend on the applicable bankruptcy and other law.

The condition of satisfying the financial test relevant to the issue, such as sufficient assets or ability to pay obligations. A solvent balance sheet does not necessarily establish adequate liquidity.

An initial bidder whose proposed purchase agreement sets a baseline for a competitive sale process. Selection does not guarantee the bidder will win or that requested protections will be approved.

Also known as stalking horse · stalking-horse bid

A court order of continuing or general application, such as a case-assignment or procedural order. Its applicability must be checked for the court, judge, and matter.

An agreement to pause specified enforcement or other actions for a defined period or subject to conditions. Its coverage is contractual and does not replicate the automatic stay against all creditors.

A required disclosure addressing specified historical financial and business activities. It supplements the current asset-and-liability schedules rather than replacing them.

Also known as SOFA

A legal time limit for commencing a claim or action. Accrual, tolling, extensions, and claim-specific statutes can affect the deadline; a general calendar assumption is insufficient.

A lien arising solely by force of a statute under specified circumstances, rather than by an agreement or judgment. Bankruptcy treatment depends on the lien and any applicable avoidance provisions.

An order temporarily suspending the effect or enforcement of a ruling during appellate review. Filing an appeal does not automatically supply every requested stay.

An agreement between litigating parties concerning facts, procedure, or proposed relief. Court approval or an entered order may still be necessary for it to have the intended effect.

A common name for accepting collateral in full or partial satisfaction of secured obligations under Article 9. Required consent, notice, and objection rules apply; it is not simply taking the assets.

A common name for the trustee's avoidance authority under § 544(a), which provides specified hypothetical creditor or purchaser statuses. State property law remains important to the resulting priority analysis.

A pathway within Chapter 11 for qualifying debtors that elect it, with specific eligibility, trustee, plan, and confirmation rules.

Also known as Subchapter 5

The trustee assigned in a Subchapter V case, with duties that include facilitating a consensual plan and performing other statutory functions. Management is not automatically displaced by the appointment.

An agreement placing specified payment or lien rights behind another creditor's rights. Payment subordination and lien subordination are different arrangements and should not be treated as interchangeable.

A command to attend, testify, or produce materials issued under applicable law. A subpoena is subject to service requirements, objections, and protections for undue burden.

Substitution into another creditor's rights after payment or satisfaction of an obligation, subject to legal requirements and limits. Section 509 addresses specified bankruptcy subrogation claims.

A later recipient of transferred property or value. Section 550 provides a defense for certain later transferees who take for value, in good faith, and without the specified knowledge.

A preference defense based on qualifying new value supplied after the challenged transfer. Unpaid-value requirements, later payments, and controlling circuit law can affect the calculation.

Also known as subsequent new value defense

A defined stage of plan implementation involving specified transfers, assumption of business or management, and commencement of distributions. It affects issues such as plan modification.

A court-ordered combination of estates or related assets and liabilities for specified bankruptcy purposes. It is different from joint administration and depends on jurisdiction-specific doctrine.

Potential liability of an asset buyer or successor for obligations associated with a predecessor. Transaction structure, notice, governing law, and the scope of any sale order affect the analysis.

A procedure resolving claims or issues without trial when the governing standard concerning material facts and entitlement to judgment is met.

Court process directing a defendant to respond to a complaint. Bankruptcy adversary proceedings have specific issuance, service, and timing rules.

A claim granted a rank above specified administrative expenses under a particular statute or order. The priority's scope and collateral relationship must be read precisely.

An arrangement under which a surety undertakes a specified obligation if the principal fails to perform. The bond, indemnity agreement, and applicable law determine exposure and recovery rights.

Value remaining after required payments, expenses, and reserves in the relevant administration. Whether it may be distributed to owners depends on applicable law and unresolved obligations.

A tax collection mechanism reaching property or rights to property under applicable statutory procedures. A levy differs from a lien, and bankruptcy restrictions and statutory protections may affect enforcement.

A lien securing tax obligations under applicable law. Its attachment, notice, priority, enforcement, and release rules differ from merely having an unpaid tax balance.

Reduction of specified tax benefits following certain excluded cancellation-of-debt income. The ordering rules, available elections, and entity-level application require tax analysis.

Also known as tax attribute reduction

A loan advanced on specified terms with scheduled amortization, a final maturity, or both. Principal payments, covenants, collateral, and refinancing risk affect restructuring options.

A filing indicating that a financing statement is no longer effective as specified by Article 9. Authority to file and the secured party's obligations require separate analysis.

Also known as UCC termination

A provision addressing claims against persons other than the debtor. Consent, statutory authority, and controlling law are critical; company bankruptcy does not automatically release affiliates or guarantors.

Also known as nondebtor release · non-debtor release

An agreement addressing the running of a limitations period for specified claims. Its parties, scope, duration, and enforceability determine what rights are actually preserved.

A broadly defined disposition of or parting with property or an interest in property under the Bankruptcy Code. It can include granting a lien, making a payment, or undertaking another covered transaction.

A transaction legally treated as a lease rather than a disguised secured financing. Economic terms and the governing legal test determine characterization, rather than the agreement's title alone.

A federal penalty that can apply to responsible persons who willfully fail to collect, account for, or pay over specified taxes. Corporate limited liability does not automatically prevent this statutory exposure.

Also known as TFRP

Taxes collected or withheld for the government, such as specified payroll withholdings. Failure to remit can create liability separate from an ordinary trade debt and, in qualifying cases, exposure for responsible persons.

Also known as trust fund taxes

A fiduciary performing duties under the applicable bankruptcy chapter. A liquidating Chapter 7 trustee and a Subchapter V trustee have different roles.

An effort to restore a troubled business's operational and financial viability. It may include pricing, cost, working-capital, management, financing, and creditor changes; refinancing alone may not repair the underlying business.

A demand or proceeding seeking delivery of qualifying property, records, or debts to a trustee or estate representative. Section 542 has specific requirements and is not a substitute for litigating every disputed contract claim.

A payment or fund not collected by its intended recipient. Bankruptcy rules govern treatment and later requests for recovery of qualifying unclaimed funds.

A creditor whose allowed debt exceeds the value available from its collateral under the relevant valuation standard. The secured and unsecured treatment must be analyzed separately.

A lease that has not expired and may be subject to assumption or rejection under § 365. Real-property, equipment, and other leases can have different deadlines and special statutory rules.

A limit on specified nonconsensual plan treatment of classes. Courts apply tests addressing differences in treatment under the applicable statutory confirmation framework.

A model body of commercial law enacted, with variations, by states. Its provisions cover subjects including sales and secured transactions; the governing state's enacted text and amendments control.

Also known as UCC

The predecessor model statute to the Uniform Voidable Transactions Act. It remains relevant in some jurisdictions and to transactions governed by earlier law; the correct state enactment and effective date matter.

Also known as UFTA

A model state-law framework for challenging specified transfers and obligations, succeeding the Uniform Fraudulent Transfer Act. Adoption, amendments, effective dates, defenses, and remedies must be checked in the applicable state.

Also known as UVTA

A class receiving treatment that satisfies the statutory nonimpairment rules. An unimpaired class is generally deemed to accept the plan under § 1126(f).

A Department of Justice official supervising bankruptcy administration within the U.S. Trustee Program. This role differs from a case trustee who administers a particular estate.

Also known as U.S. trustee · U.S. Trustee · US trustee

A claim whose amount has not been fixed or readily determined. It may still exist even though valuation or litigation is needed.

A financial-condition concept used in constructive fraudulent-transfer analysis. It concerns the capital available for the business or transaction and is distinct from a simple balance-sheet insolvency test.

A claim omitted from the debtor's schedules. Notice, filing requirements, and the effects of omission require analysis under the applicable chapter and facts.

A claim without a qualifying collateral interest for its payment. Priority and general unsecured claims can receive different treatment.

Security or other adequate assurance addressing postpetition payment for qualifying utility service under § 366. The required form and amount depend on the statute and any court determination.

Comparison of actual results with a budget or forecast to explain differences. In distress, collection timing, payment deferrals, unexpected costs, and changes in borrowing availability are especially relevant.

The legally proper location for filing or hearing a case. Bankruptcy venue rules consider specified connections and are distinct from subject-matter jurisdiction.

A transaction subject to being set aside under an applicable avoidance statute. Many states use this terminology for claims historically described as fraudulent transfers; state enactments and remedies differ.

An entity's dissolution through the approvals and filings required by its governing law. Winding-up duties, claims, reserves, taxes, and surviving liabilities must still be addressed.

A filing by an eligible debtor commencing a bankruptcy case. A business filing requires appropriate entity authorization and compliance with filing requirements.

A grouping of claims or interests whose votes are considered under the plan-classification and acceptance rules. Not every class is entitled to vote.

The preferential treatment of qualifying wage and related claims under § 507, subject to statutory limits and timing conditions. Not every employee claim has the same rank or payment treatment.

A relinquishment of an identified contractual or legal right. A limited waiver of a specific default does not necessarily amend future requirements or excuse different defaults.

The federal Worker Adjustment and Retraining Notification Act, requiring advance notice for covered plant closings and mass layoffs, subject to statutory rules and exceptions. State notice laws may impose additional duties.

Also known as Worker Adjustment and Retraining Notification Act

The organized process of ending operations, realizing assets, resolving obligations, and completing remaining affairs. It can occur through several legal routes and is not itself a discharge of debt.

Also known as winding up · wind down

Potential employer liability arising from a complete or partial withdrawal from a covered multiemployer pension plan. Measurement, exceptions, dispute procedures, and collection requirements are governed by specialized statutory rules.

Usually current assets minus current liabilities, subject to the particular accounting or transaction definition. A positive balance can still include slow-moving inventory or doubtful receivables that cannot quickly fund payroll.

A negotiated adjustment of obligations outside bankruptcy, such as an extension, forbearance, amendment, or settlement. Consent and enforceable terms determine its reach.

Also known as business workout · debt workout