Bankruptcy Terminology

DEBTOR

A person who has filed a petition for relief under the bankruptcy laws.

DEFENDANT

An individual (or business) against whom a lawsuit is filed.

DISCHARGE

A release of a debtor from personal liability for certain dischargeable debts.  (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts (defined below) and prevents the creditors owed those debts from taking any action against the debtor or the debtor’s property to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.)

DISCHARGEABLE DEBT

A debt for which the Bankruptcy Code allows the debtor’s personal liability to be eliminated.

DISCLOSURE STATEMENT

A written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide “adequate information” to creditors to enable them to evaluate the chapter 11 plan of reorganization.