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Chapter Thirty Three
An unofficial term describing a company that has filed for Chapter 11 three times.
Garnishment Laws
Unsecured creditors in relation to garnishment laws do not hold any collateral that they can take from you if you fall behind on your payments.
Default
The failure by an entity to abide by the covenants in a debt obligation or other agreement to which it is a party. The most common default is non-payment of interest or principal.
Chapter Twenty Two
An unofficial term describing a company that has filed for Chapter 11 twice.
Liquidation value
The aggregate value of a business if its assets are sold piecemeal.
Chapter Thirteen
Bankruptcy proceedings for an individual with the intention of rescheduling the individual's debt (rather than liquidating the individual's assets and debt; an individual files under Chapter 7 to liquidate);
Debtor-in-possession
The debtor which remains in control of operations; as opposed to having a trustee operate the company.
Core proceedings
Those proceedings that are inherent in and fundamental to the administration of a bankruptcy case.
Bankrupt
The entity that files a bankruptcy; the debtor; the insolvent entity. This is a non-technical term and is not used in the Bankruptcy Code.
Deed in Lieu of Foreclosure
If you will be unable to cure the default, and a private sale does not appear realistic, VA will consider accepting a deed in lieu of foreclosure. If there are no liens on the property, and VA agrees to accept a deed, you will have to sign legal papers making VA the owner of the property.
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