Bankruptcy Glossary

Bankruptcy Law Terms -S-

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Schedules: Documents consisting of lists of debts, property and other information that are filed together with the petition at the commencement of a bankruptcy case. 

Secured debt: Debts for which the extension of credit was based upon the creditor's right to seize pledged property on default, in addition to the debtor's ability to pay. 

Security: May include the following:

  • note
  • stock
  • treasury stock
  • bond
  • debenture
  • collateral trust certificate
  • pre-organization certificate or subscription
  • transferable share
  • voting-trust certificate
  • certificate of deposit
  • certificate of deposit for security

Security interest: A lien created by an agreement 

Setoff: A creditor's right to keep debtor's money that they have in their possession in order to apply it to a pre-petition debt owed by the debtor. 

Spendthrift provision: A trust with restrictions on alienation designed to protect the fund from dissipation by the beneficiary or seizure by the beneficiary's creditors.

Statement of intentions: A document that the debtor files at the commencement of a bankruptcy case describing what he or she intends to do with secured assets. 

Statutory lien: Lien arising solely by force of a statute on specified circumstances or conditions. 

Stay: A restraining order arising out of the filing of a bankruptcy case.

Straight bankruptcy: Chapter 7 bankruptcy in which debts are discharged, non-exempt property is liquidated and there is no extended payment plan involved.

Substantial abuse: The characterization of a bankruptcy case filed by an individual whose debts are primarily consumer debts and where the court finds that the granting of relief would be an abuse under the chapter 7 laws because the debtor can pay its debts.

Substantive consolidation: Putting the assets and liabilities of two or more related debtors into a single pool to pay creditors.