bankruptcy Archives - Legal Dictionary

Bankruptcy

June 4, 2015 by: Content Team

Bankruptcy is a legal process that allows consumers and business entities to eliminate some, or all, of their debts by order of a federal court. While bankruptcy gives individuals and businesses a fresh start, as the court forgives debts that cannot be paid, it also gives creditors an opportunity to get at least partial repayment, based on what assets the […]

Debtor in Possession

February 2, 2015 by: Content Team

“Debtor in possession” is a term in U.S. bankruptcy law that refers to an individual or entity that has filed Chapter 11 bankruptcy, but remains in possession and control of property against which a creditor has a lien. In the case of a business, this gives the business owner the power to continue operating the business until the details of […]

Automatic Stay

January 8, 2015 by: Content Team

An automatic stay in the United States relates to bankruptcy law. The stay is an automatic injunction that halts any action by creditors once a person formally files a bankruptcy petition. This means that the creditors must stop trying to collect debts from a debtor that has declared bankruptcy. An automatic stay remains in effect until the debtor receives a […]