Bankruptcy Glossary

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Badges of fraud: Various kinds of conduct that may suggest fraudulent intent on the part of the debtor.

Bankruptcy: Legal process that takes place because of insolvency; unable to pay one's debts; insolvent.

Bankruptcy Act of 1898: The bankruptcy statute enacted in 1898 and repealed in 1978 to be replaced by the Bankruptcy Reform Act of 1978 (the current statute followed for bankruptcy cases).

Bankruptcy estate: All legal or equitable interests of the debtor in property at the time of the bankruptcy filing.

Bankruptcy Reform Act of 1978: The 1978 statute under which bankruptcy would be governed, establishing the current Bankruptcy Code and replacing the former Bankruptcy Act.

Bankruptcy Reform Act of 1994: The 1994 legislation amending the Bankruptcy Code. This enactment included provisions to expedite bankruptcy proceedings, standardize fees, and encourage consumers to file chapter 13 instead of chapter 7. Created the National Bankruptcy Review Commission to do a thorough review of the Bankruptcy Code and recommendations for additional changes.

Bankruptcy rules: Also known as the Federal Rules of Bankruptcy Procedure, the rules that govern the procedures in bankruptcy and adversary cases. In addition to these rules, each bankruptcy court typically adopts is own “local rules” that supplement the Federal Rules.