A debtor in possession (DIP) is an individual or corporation that has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code and holds property or assets which can be used to satisfy creditor claims. The debtor in possession...
bankruptcy
default
A default is a failure to fulfill an obligation. Defaulting is most common in regards to debtor-creditor law and contract law. Typically, a default leads to judicial proceedings or triggers the application of a separate contract provision....
deficiency judgment
Deficiency judgment is money awarded to creditors when assets securing a loan do not cover the debt owed by a debtor. When a debtor becomes insolvent, a creditor can repossess the asset securing the loan, and then sell the asset to recover...
discharge
A discharge is the extinguishment or release of a legal obligation or duty. For example, a discharge of the payment of a debt means you are no longer legally obligated to pay the debt. See bankruptcy.
In the context of...
discharge (of debts)
Discharge (of debts) refers to the process in bankruptcy court, when a debtor is no longer liable for their debts, and the lender is no longer allowed to make attempts to collect the debt. The court will issue a decision to discharge debts....
discharge in bankruptcy
The desired result of a bankruptcy case is a discharge in bankruptcy. A discharge in bankruptcy is a release of the debtor from further liability for debts that had been subject to bankruptcy proceedings. Discharge and dismissal are...
dischargeable debts
Dischargeable debt is debt that can be eliminated after a person files for bankruptcy. The debtor will no longer be personally liable for the debts and therefore has no legal obligation to pay discharged debt. In most cases, creditors are also unable...
disposable income
Disposable income is any income or revenue an individual or business receives that is left over after paying necessary expenses. For example, if you make $1,000 a week with $600 weekly expenses, you would have $400 weekly disposable income....
doubling
Doubling refers to a married couple’s right to take twice the amount of an exemption in bankruptcy when they file a joint case. Statutorily, 11 U.S.C. § 522(m) provides that the property that a debtor can claim as exempt to creditor claims “...
dump-buyback
Dump buyback (also called asset dump and buyback) is an ethically questionable method of getting around business debt. Business owners who are struggling with debt will “dump” the assets of the business by selling them to a friend at a...