Bankruptcy Terminology
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EQUITY
The value of a debtor’s interest in property that remains after liens and other creditors’ interests are considered. (Example: If a house valued at $60,000 is subject to a $30,000 mortgage, there is $30,000 of equity.)
EXECUTORY CONTRACT OR LEASE
Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)
EXEMPT
A description of any property that a debtor may prevent creditors from recovering.
EXEMPTION
Property that the Bankruptcy Code or applicable state law permits a debtor to keep from creditors.
EXEMPT PROPERTY
Property or value in property that a debtor is allowed to retain, free from the claims of creditors who do not have liens.
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