Bankruptcy Glossary

341 Meeting 11 U.S.C. § 341

A mandatory hearing held roughly 20-40 days after a bankruptcy case is filed, where the debtor answers questions under oath about their finances, assets, and the information in their petition. The trustee presides; creditors may attend and ask questions but rarely do. It is not held before a judge. Most 341 meetings last 5-15 minutes.

The name comes from Section 341 of the Bankruptcy Code, which requires the U.S. Trustee to convene this meeting in every case.

Adequate Protection 11 U.S.C. § 361

The protection provided to a secured creditor to compensate for the decrease in value of their collateral during the bankruptcy case. Adequate protection can take the form of cash payments, additional liens, or other relief. A creditor seeking to lift the automatic stay often argues that they lack adequate protection of their interest in the collateral.

Automatic Stay 11 U.S.C. § 362

A powerful federal injunction that takes effect the instant a bankruptcy petition is filed. It stops most collection actions, lawsuits, wage garnishments, repossessions, foreclosures, and creditor harassment. Creditors who knowingly violate the stay can face sanctions, contempt, and may be required to pay damages (for individuals, under Section 362(k)).

The stay remains in effect until the case is closed, dismissed, or the debtor receives a discharge — unless a creditor obtains court permission to proceed (relief from stay).

BAPCPA

A major overhaul of U.S. bankruptcy law signed in April 2005 and effective October 17, 2005. BAPCPA introduced the means test for Chapter 7, mandatory credit counseling, the Section 1328(f) discharge bar for repeat filers, and the Section 727(a)(8) time bar for Chapter 7. It was the most significant change to bankruptcy law since the Bankruptcy Reform Act of 1978.

Bare Petition

A bankruptcy petition filed with only the basic required information — the petition form itself, a creditor list, and sometimes nothing else. Schedules, the statement of financial affairs, and other required documents are omitted at filing and must be completed later (typically within 14 days). Bare petitions are sometimes used legitimately to invoke the automatic stay in emergencies, but they are also a hallmark of bankruptcy mills that file cases before performing basic due diligence.

Courts track bare petitions because of their strong correlation with eventual dismissal — the required documents are never completed and the case is dismissed for failure to file.

Bankruptcy Code Title 11, U.S.C.

The body of federal law governing bankruptcy in the United States. It is codified as Title 11 of the United States Code and applies uniformly across all federal judicial districts. The Bankruptcy Code is divided into chapters: Chapters 1, 3, and 5 apply to all cases, while Chapters 7, 9, 11, 12, 13, and 15 govern specific types of bankruptcy proceedings.

Bankruptcy Mill

A high-volume law practice that processes large numbers of bankruptcy cases using standardized templates, minimal individualized attention, and heavy reliance on non-attorney staff. Not all high-volume firms are mills — the distinguishing features are measurable client outcomes: abnormally high dismissal rates, frequent bare petitions, repeated discharge bar violations, failure to verify filing history, and patterns of filing cases that were never going to succeed.

Research using PACER data and the FJC Integrated Database has shown that mill-pattern firms have dismissal rates 2-5x higher than non-mill firms handling comparable caseloads in the same districts.

Bankruptcy Rules

The procedural rules governing bankruptcy cases in all federal courts, adopted by the Supreme Court under the Rules Enabling Act. They supplement the Bankruptcy Code and cover everything from filing requirements to contested matters, adversary proceedings, and appeals. Local bankruptcy rules adopted by individual courts add district-specific procedures.

Chapter 7 11 U.S.C. §§ 701-784

The most common form of consumer bankruptcy. A Chapter 7 trustee collects the debtor's non-exempt assets (if any), sells them, and distributes the proceeds to creditors. In return, most of the debtor's remaining unsecured debts are discharged. Most Chapter 7 cases are "no-asset" cases where the debtor keeps everything they own because it is all exempt. The process typically takes 4-6 months from filing to discharge.

Eligibility depends on passing the means test or demonstrating that income is below the state median.

Chapter 11 11 U.S.C. §§ 1101-1174

A chapter used primarily by businesses (and sometimes individuals with large debts) to reorganize their finances while continuing to operate. The debtor typically remains in possession of the business as a debtor in possession and proposes a plan of reorganization that restructures debts and operations. Creditors vote on the plan, and the court confirms it if statutory requirements are met.

Small businesses with debts under approximately $7.5 million may use Subchapter V, a streamlined process with fewer procedural requirements.

Chapter 12 11 U.S.C. §§ 1201-1232

A specialized chapter for family farmers and family fishermen with regular annual income. Chapter 12 is modeled on Chapter 13 but has higher debt limits and provisions tailored to agricultural operations with seasonal income. It allows farmers to restructure debts while continuing to operate their farms.

Chapter 13 11 U.S.C. §§ 1301-1330

A chapter for individuals with regular income who want to repay some or all of their debts over a 3-5 year repayment plan. Chapter 13 lets debtors keep their property — including homes and vehicles — while catching up on missed payments. It is often used to cure mortgage arrears or cram down secured debts.

The debtor must have regular income, unsecured debts below $465,275, and secured debts below $1,395,875 (amounts adjusted periodically). A trustee collects monthly payments and distributes them to creditors.

Claim / Proof of Claim 11 U.S.C. § 501

A creditor's formal assertion of a right to payment from the bankruptcy estate. A proof of claim (POC) is the document a creditor files with the court to establish the amount and type of debt owed. In Chapter 13 cases, the claims bar date is usually 70 days after the petition date. Claims not filed by the deadline may be disallowed. The debtor or trustee can object to any claim.

Confirmation 11 U.S.C. § 1325 / § 1129

The court's approval of a debtor's proposed repayment plan. In Chapter 13, the court must find that the plan meets the requirements of Section 1325 — including that it was proposed in good faith, pays priority claims in full, and devotes all disposable income to the plan. Once confirmed, the plan becomes binding on the debtor and all creditors.

Cramdown 11 U.S.C. § 1325(a)(5) / § 1129(b)

A provision allowing the court to confirm a plan over the objection of a secured creditor or (in Chapter 11) a dissenting class of creditors, provided certain statutory requirements are met. In Chapter 13, a secured claim can be "crammed down" to the value of the collateral rather than the full contract amount, as long as the debtor pays at least that value plus interest. In Chapter 11, a plan can be crammed down on a class that rejects it if the plan does not discriminate unfairly and is fair and equitable.

Credit Counseling Certificate 11 U.S.C. § 109(h)

A certificate proving the debtor completed a credit counseling briefing from an approved agency within 180 days before filing. This is a mandatory prerequisite under BAPCPA — no individual can file bankruptcy without it. A separate debtor education course is required before discharge. Both must be from agencies approved by the U.S. Trustee.

Creditor 11 U.S.C. § 101(10)

An entity that holds a claim against the debtor that arose before the bankruptcy filing. Creditors are classified as secured (holding liens on specific property), priority (owed debts given special treatment by statute, such as taxes or domestic support), or unsecured (general claims without collateral). Different classes of creditors receive different treatment in the repayment plan.

Debtor 11 U.S.C. § 101(13)

The person or entity that files a bankruptcy petition. The debtor is the individual, married couple, or business seeking relief from debts. Once the case is filed, the debtor's property becomes part of the bankruptcy estate. In Chapter 13 and Chapter 11, the debtor proposes a plan; in Chapter 7, the debtor's non-exempt assets are liquidated.

Debtor in Possession (DIP) 11 U.S.C. § 1101(1)

In Chapter 11 (and Subchapter V), the debtor that continues to operate the business after filing. The DIP has most of the rights and powers of a trustee, including the ability to use, sell, or lease property, borrow money, and manage operations. The DIP retains possession of the business unless the court appoints a separate trustee for cause (fraud, mismanagement, etc.).

Discharge 11 U.S.C. § 524 / § 727 / § 1328

A court order that releases the debtor from personal liability for certain debts. Once a debt is discharged, the creditor is permanently barred from attempting to collect it — the discharge operates as a federal injunction. In Chapter 7, discharge typically occurs about 60-90 days after the 341 meeting. In Chapter 13, discharge occurs after completing all plan payments, usually 3-5 years.

Not all debts are dischargeable. Common exceptions include most student loans, child support, alimony, recent taxes, and debts obtained through fraud. See Section 523.

Discharge Bar 11 U.S.C. § 1328(f) / § 727(a)(8)

A statutory prohibition that prevents a debtor from receiving a discharge if they received a prior discharge too recently. Under Section 1328(f), a Chapter 13 debtor cannot receive a discharge if they received a Chapter 7 discharge within 4 years or a prior Chapter 13 discharge within 2 years of the current filing. Under Section 727(a)(8), a Chapter 7 debtor cannot receive a discharge if they received a prior Chapter 7 discharge within 8 years.

The filing itself is not blocked — only the discharge. This means a barred debtor may go through the entire case and receive no debt relief at the end.

Dismissal 11 U.S.C. § 349 / § 707 / § 1307

The termination of a bankruptcy case without the debtor receiving a discharge. Dismissal generally returns the debtor and creditors to the positions they were in before the case was filed. Common reasons include failure to file required documents, failure to make plan payments, failure to attend the 341 meeting, or failure to complete credit counseling.

A motion to dismiss can be filed by the trustee, a creditor, or the U.S. Trustee. In Chapter 13, the debtor can also request voluntary dismissal.

Disposition

The final outcome of a bankruptcy case. The FJC Integrated Database and PACER reports categorize dispositions into categories including: discharged, dismissed, converted to another chapter, transferred, and closed without discharge. Disposition data is critical for evaluating attorney and firm performance — a high dismissal rate relative to peers handling comparable cases in the same district is a measurable quality signal.

District 28 U.S.C. § 151

A geographic unit of the federal court system. Each state has at least one federal judicial district, and many have multiple (for example, the Eastern and Western Districts of Missouri). Bankruptcy courts are units of the district courts, and each district has its own ECF system, local rules, and trustee panel. There are 94 federal judicial districts across the United States and territories.

Docket

The official record of all filings, orders, and proceedings in a case. Every document filed with the court — petitions, motions, orders, notices — is assigned a docket number and recorded on the docket sheet. The docket is the primary historical record of a bankruptcy case and is accessible through PACER or RECAP.

ECF Electronic Case Filing

The federal courts' electronic system for filing and managing case documents. Attorneys admitted to practice in a given district register for ECF access and file all documents electronically. Each district has its own ECF system (for example, ecf.mowb.uscourts.gov for the Western District of Missouri). ECF generates automatic notifications to parties of record when new documents are filed.

CM/ECF (Case Management / Electronic Case Files) is the broader system; ECF is the filing component that attorneys interact with directly.

Estate 11 U.S.C. § 541

All of the debtor's legal and equitable interests in property as of the moment the bankruptcy petition is filed. The estate is a separate legal entity that includes real property, personal property, bank accounts, lawsuits, tax refunds, and virtually everything the debtor owns or has an interest in. In Chapter 7, the trustee administers the estate. In Chapter 13 and 11, the debtor typically retains possession but the estate still exists.

Exempt Property / Exemptions 11 U.S.C. § 522

Property that the debtor is allowed to keep and protect from creditors during bankruptcy. Exemptions are defined by federal law (Section 522(d)) and state law, and most states require debtors to use the state exemption scheme. Common exemptions cover a homestead (primary residence equity), vehicles, household goods, tools of the trade, and retirement accounts. In Chapter 7, exempt property is not available for liquidation.

FJC Federal Judicial Center

The research and education agency of the federal judiciary. The FJC maintains the Integrated Database (IDB), which contains records for every federal bankruptcy case filed since the 1970s. The IDB is the primary data source for academic research on bankruptcy outcomes and includes case-level fields like filing date, disposition, chapter, district, and debtor type. FJC data is available free for research purposes.

Good Faith 11 U.S.C. § 1325(a)(3) / § 1325(a)(7)

A requirement that both the bankruptcy petition and the proposed plan be filed in good faith. Courts evaluate the totality of the circumstances, including whether the debtor is attempting to abuse the bankruptcy system, whether the plan is feasible, and whether the debtor has been honest with the court. A finding of bad faith can result in dismissal or denial of confirmation.

Lien 11 U.S.C. § 101(37)

A legal interest in a debtor's property that secures payment of a debt. Common types include mortgage liens (on real property), security interests (on personal property like vehicles and equipment), judgment liens (arising from court judgments), and tax liens. In bankruptcy, lien status determines how a creditor is treated in the plan — secured creditors with valid liens generally must be paid the value of their collateral.

Liens that exceed the value of the collateral may be partially or fully avoided ("stripped") in certain circumstances. See Section 506 for valuation rules.

Means Test 11 U.S.C. § 707(b)

A two-part financial test introduced by BAPCPA that determines whether a debtor qualifies for Chapter 7. First, if the debtor's household income is below the state median for their family size, they pass automatically. If above the median, the second part deducts allowed expenses from income to determine whether enough disposable income exists to fund a Chapter 13 plan. If the debtor fails the means test, they may be required to file Chapter 13 instead of Chapter 7.

Motion for Relief from Stay 11 U.S.C. § 362(d)

A request by a creditor asking the court to remove the automatic stay protection so the creditor can pursue collection actions — typically repossession or foreclosure. Common grounds include failure to make payments (lack of adequate protection) and lack of equity in the collateral when the property is not necessary for an effective reorganization. If granted, the creditor can proceed with state-law remedies against the collateral.

Motion to Dismiss 11 U.S.C. § 707 / § 1307(c)

A formal request asking the court to terminate the bankruptcy case. In Chapter 7, the U.S. Trustee may move to dismiss for abuse under Section 707(b). In Chapter 13, the trustee or a creditor may move to dismiss for cause under Section 1307(c), including failure to make plan payments, failure to file required documents, or unreasonable delay. The debtor can oppose the motion, and the court holds a hearing before ruling.

PACER

The federal courts' online system for public access to case records and documents. PACER provides docket sheets, filed documents, and case information for all federal courts (bankruptcy, district, and appellate). Account creation is free. Searches are free. Document access costs $0.10 per page, capped at $3.00 per document. Users with quarterly charges under $30 are exempt from fees.

PACER is the primary source of raw data for bankruptcy research, including attorney caseloads, disposition rates, and filing patterns.

Plan 11 U.S.C. § 1321 / § 1121

The document that specifies how debts will be repaid during the bankruptcy case. In Chapter 13, the debtor proposes a plan that lasts 3-5 years, specifying monthly payment amounts and how each class of creditors will be treated. In Chapter 11, the plan of reorganization describes how the business will restructure its debts and operations. The plan must be approved (confirmed) by the court.

Plan Modification 11 U.S.C. § 1329 / § 1193

A change to a confirmed repayment plan. In Chapter 13, the debtor, trustee, or holder of an allowed unsecured claim can request a modification under Section 1329. Common reasons include a change in income, unexpected expenses, or the need to correct errors in the original plan. In Subchapter V of Chapter 11, modification is governed by Section 1193.

Prior Filer

A debtor who has filed bankruptcy before. The Bankruptcy Code has multiple provisions that treat prior filers differently: Section 1328(f) bars discharge for recent Chapter 13 filers, Section 727(a)(8) bars discharge for recent Chapter 7 filers, Section 109(g) bars filing entirely in certain circumstances, and Section 362(c)(3)-(4) limits the automatic stay for repeat filers.

Prior filing history is disclosed on the petition (Question 9) and can be verified through PACER.

Pro Se

A party who represents themselves in court without an attorney. Individual debtors may file and prosecute their own Chapter 7 or Chapter 13 cases pro se. However, corporations and other entities generally cannot appear pro se in federal court and must be represented by an attorney. Pro se filers are held to the same procedural rules as represented parties, though courts often extend some leniency in interpreting filings.

Reaffirmation Agreement 11 U.S.C. § 524(c)

A voluntary agreement between the debtor and a creditor to remain personally liable for a debt that would otherwise be discharged. Reaffirmation agreements are most common in Chapter 7 for secured debts like car loans, where the debtor wants to keep the collateral. The agreement must be filed with the court before discharge and can be rescinded within 60 days. If the debtor is not represented by an attorney, the court must hold a hearing and approve the agreement.

RECAP

A free, open-source project by the Free Law Project that makes federal court records available to the public without PACER fees. RECAP consists of a browser extension that automatically uploads PACER documents to a public archive, and the CourtListener platform that hosts and indexes those documents. Millions of bankruptcy documents are available through RECAP at no cost.

Rule 4004 Fed. R. Bankr. P. 4004

The federal rule governing the timing of discharge and objections to discharge. Rule 4004(a) sets the deadline for filing complaints objecting to discharge at 60 days after the first date set for the 341 meeting. Rule 4004(c) governs when the court grants discharge. A 2025 proposed amendment (Suggestion 25-BK-N) would require courts to verify prior filings before entering discharge, addressing cases where Section 1328(f) bars were missed.

Section 109(g) 11 U.S.C. § 109(g)

A provision that bars a debtor from filing a new bankruptcy case for 180 days if their previous case was dismissed under certain circumstances: either the debtor willfully failed to obey court orders or to appear in court, or the debtor requested and obtained voluntary dismissal after a creditor filed a motion for relief from stay. Unlike discharge bars, Section 109(g) prevents the filing itself, not just the discharge.

Section 329(b) 11 U.S.C. § 329(b)

A provision allowing the court to order a debtor's attorney to return fees that exceed the reasonable value of the services provided. Section 329(a) requires attorneys to disclose all compensation received or agreed to within one year before filing. If the court finds the compensation exceeds the reasonable value of services, it can cancel the agreement or order the return of any excess. This is one of the court's primary tools for policing attorney fees in bankruptcy.

Section 362(a) 11 U.S.C. § 362(a)

The subsection that enumerates the specific acts prohibited by the automatic stay. It lists eight categories of stayed actions, including commencing or continuing lawsuits, enforcing judgments, creating or perfecting liens, and any act to collect or recover a pre-petition claim. Section 362(a) is self-executing — no court order is required for it to take effect.

Section 523 11 U.S.C. § 523

The section that lists debts that cannot be eliminated through bankruptcy. Common nondischargeable debts include: most taxes less than 3 years old, student loans (absent undue hardship), domestic support obligations (child support, alimony), debts from fraud or willful injury, DUI judgments, and government fines. Some exceptions are automatic; others require the creditor to file a complaint and prove the debt qualifies.

Section 707(b) 11 U.S.C. § 707(b)

The provision authorizing dismissal of a Chapter 7 case (or conversion to Chapter 13) if the filing is found to be an abuse. It creates a presumption of abuse based on the means test, but abuse can also be found based on the totality of circumstances, including whether the debtor filed in bad faith. The U.S. Trustee is required to review every Chapter 7 case for potential abuse.

Section 727(a)(8) 11 U.S.C. § 727(a)(8)

The provision that bars a Chapter 7 discharge if the debtor received a prior Chapter 7 (or Chapter 11) discharge within 8 years before the current filing date. This is the Chapter 7 equivalent of the Section 1328(f) bar for Chapter 13. The time period runs from filing date to filing date, not discharge date to filing date.

Section 1328(f) 11 U.S.C. § 1328(f)

The provision that bars a Chapter 13 discharge for certain repeat filers. Introduced by BAPCPA in 2005, it creates two time bars:

1328(f)(1): No discharge if the debtor received a Chapter 7, 11, or 12 discharge within 4 years before the current Chapter 13 filing date.

1328(f)(2): No discharge if the debtor received a prior Chapter 13 discharge within 2 years before the current filing date.

The filing itself is not blocked — only the discharge. This means a barred debtor may complete a 3-5 year payment plan and receive no debt relief at the end. The bar is not always caught at filing, which is why independent screening tools exist.

Subchapter V 11 U.S.C. §§ 1181-1195

A streamlined form of Chapter 11 created by the Small Business Reorganization Act of 2019 (SBRA) for small business debtors with total debts under approximately $7.5 million (adjusted periodically). Key benefits include: only the debtor can propose a plan, no creditor voting is required for confirmation, a Subchapter V trustee facilitates (but does not replace) the debtor, and administrative costs are lower. It was designed to make Chapter 11 accessible to small businesses that could not afford traditional Chapter 11.

Trustee 11 U.S.C. § 701 / § 1302 / § 1183

A person appointed to administer a bankruptcy case. The role varies by chapter:

Chapter 7 Trustee: Liquidates non-exempt assets and distributes proceeds to creditors.

Chapter 13 Trustee: Collects the debtor's monthly payments and distributes them to creditors according to the confirmed plan. Also reviews the plan for feasibility and compliance.

Subchapter V Trustee: Facilitates the reorganization process, assists in plan development, and may distribute payments under a confirmed plan.

Trustees are private individuals (not government employees) appointed from panels maintained by the U.S. Trustee.

Unsecured Debt 11 U.S.C. § 506(a)

A debt not backed by collateral or a lien. Common examples include credit card debt, medical bills, personal loans, and utility bills. In Chapter 7, most unsecured debts are discharged entirely. In Chapter 13, unsecured creditors receive a percentage of their claims based on the debtor's disposable income — this percentage can range from 0% to 100% depending on the debtor's income and expenses.

U.S. Trustee (UST) 28 U.S.C. § 586

A component of the U.S. Department of Justice responsible for overseeing the administration of bankruptcy cases. The U.S. Trustee program (not to be confused with case trustees) appoints and supervises private trustees, monitors the conduct of parties in bankruptcy cases, enforces reporting requirements, identifies fraud and abuse, and can move to dismiss cases filed in bad faith. The Executive Office for U.S. Trustees (EOUST) in Washington, D.C. oversees the regional offices.

The U.S. Trustee program operates in all federal judicial districts except Alabama and North Carolina, which use a separate Bankruptcy Administrator system.

Voluntary Petition 11 U.S.C. § 301

A bankruptcy case initiated by the debtor filing a petition with the court. The vast majority of bankruptcy cases are voluntary. The petition includes basic information about the debtor, the chapter being filed under, and is accompanied by schedules of assets and liabilities, a statement of financial affairs, and other required documents (or filed as a bare petition with documents to follow). An involuntary petition (Section 303) is one filed against the debtor by creditors — a rare proceeding.