[based on IRM 25.17.1.6 (07-01-2002)]

ABANDONMENT — Abandonment is the process of severing a bankruptcy estate’s interest in property. Under the Bankruptcy Code, the bankruptcy court may permit the trustee to abandon any property of the estate that is burdensome or of inconsequential value to the estate. Abandonment to avoid adverse tax consequences is an issue when the debtor is an individual in Chapter 7 or Chapter 11.

AFFIRMATIVE ACT — The trustee may actively abandon or a party in interest may request abandonment. The trustee may abandon to the debtor or a party with a possessory interest. Notice of hearing is required, although hearing notice can be general, and a hearing is not always held.

ADMINISTRATIVE ABANDONMENT — If the property is listed in the schedules, but it is not administered by the trustee (i.e., sold), then it is abandoned to the debtor upon closing of the estate.

ADEQUATE PROTECTION — Under the Bankruptcy Code, a secured creditor is allowed to have its secured interest "adequately protected" while the automatic stay is in effect. This arises when the property is depreciating, losing value, or, in some cases, when the accrued interest on the defaulted loan is diminishing the equity in the property. The court may award the creditor some protection against the loss of value rather than modifying the automatic stay. Adequate protection most commonly consists of periodic cash payments and replacement liens in post-petition assets.

ADEQUATE PROTECTION AGREEMENT — An agreement between a debtor and a secured creditor to protect the creditor's secured portion until a plan of reorganization is confirmed.

ADMINISTRATIVE EXPENSE — A liability incurred by the bankruptcy estate for actual, necessary expenses of preserving the estate. This includes tax liabilities for periods ending post-petition and before discharge or dismissal for which the estate is liable. The IRS is entitled to payment of these taxes from the estate as a priority tax (generally paid at time of confirmation). See B.C. § 503 for the definition of allowable administrative expenses and I.R.C. § 1398(h) for the proper handling of these expenses on the bankruptcy estate's tax return.

ADVERSARY PROCEEDING — A lawsuit within the bankruptcy case in which one party files a complaint to seek relief (for example, to recover money or property, to determine the validity of a lien, to determine dischargeability of a debt, or to obtain an injunction). Adversary proceedings involve more legal formalities than contested matters.

AMDISA — Systems used by examination function that Insolvency frequently uses while researching tax accounts.

AIMS — The Audit Information Management System used by examination function.

AMDIS — The Audit Management Display Information System; one of examination's Command Codes used on the Integrated Data Retrieval System (IDRS) to show any return that is being audited by the examination function.

AMDISA — Same as AMDIS, except it is used to show specific information on an open tax period.

AIS — Automated Insolvency System. The bankruptcy database that is maintained by Insolvency. It has many functions working together that allow Insolvency to more effectively manage all of the bankruptcy cases in Insolvency's inventory.

ASED — The Assessment Statute Extension Date marks the date that the statutory period of time for assessing a tax ends. The timeframe for assessing a tax is normally three years from the due date, or three years from the date the return is filed, whichever is later. I.R.C. § 6502.

ASSET CASE — bankruptcy case in which the debtor has assets which are non-exempt (i.e., available for use in satisfying creditors' claims). In a no asset case, the debtor has only exempt assets, such as a personal home or car, that are not available to pay claims.

AUTOMATIC STAY — An injunction that arises by operation of bankruptcy law when a bankruptcy is filed. B.C. § 362. The automatic stay is effective as of the bankruptcy petition date. It is a prohibition on the commencement or continuation of any legal or enforcement activities against the debtor, the debtor's property, and property of the estate (subject to certain exceptions).

• The stay stops all debt collection activities, solicitation, and foreclosure, as well as commencement or continuation of proceedings against the debtor, the debtor's property, and/or the estate’s property.
• Any willful violation of the stay may give the debtor the right to claim actual damages and attorney’s fees (but not punitive damage fees). Creditors may ask the court for relief from the automatic stay to permit them to pursue collection remedies, such as a foreclosure action on real property, or to offset a tax refund.

BANKRUPTCY — Refers to a judicial process to resolve a debtor's problems in paying debts incurred by the debtor. The term bankruptcy is usually used in connection with the federal bankruptcy laws enacted by Congress. While bankruptcy proceeding generally refers to a proceeding brought in the federal bankruptcy courts governed by the Bankruptcy Code, the terms insolvency proceeding and receivership usually refer to proceedings brought under state laws and supervised by the state courts. A bankruptcy can either be voluntary or involuntary. See B.C. § 303 for the requirements to file an involuntary petition.

BANKRUPTCY CODE — The laws of bankruptcy codified under Title 11, United States Code, §§ 101 through 1330.

BANKRUPTCY COURT — A court created by Congress pursuant to Article 1 of the U.S. Constitution to hear bankruptcy cases. U.S. District Courts have delegated jurisdiction to bankruptcy courts to hear cases arising under Title 11.

BANKRUPTCY ESTATE — See Estate.

BANKRUPTCY PETITION — The form filed by the debtor (or against the debtor by creditors in an involuntary bankruptcy) with the bankruptcy court requesting relief from creditors. It is filed to commence a case under any chapter of the Bankruptcy Code.

BANKRUPTCY REFORM ACT OF 1994 (BRA 94) — Signed into law and effective for all bankruptcy cases filed on or after October 22, 1994. It made changes to the bankruptcy law such as permitting assessments and issuing notice and demand during the automatic stay and the filing of late proofs of claim in Chapter 7 cases.

BANKRUPTCY RULES — Rules of procedure that govern the practice and procedure in bankruptcy cases.

BAR DATE — The date fixed by the court or by statute as the date by which a creditor must file a proof of claim. The Service is allowed a minimum of 180 days after the order of relief in which to file a proof of claim. The court may grant extensions for cause.

CASE DOCKET — The official record of the bankruptcy case. It shows every event and every document filed in the case. The docket is maintained by the bankruptcy clerk’s office.

CASH COLLATERAL — Bankruptcy Code § 363(a) defines cash collateral as "cash, negotiable instruments, documents of title, securities, deposit accounts or other cash equivalents." It simply means cash or cash equivalents which are property of the estate and in which the IRS or other creditor has a secured interest.

CHANGE OF VENUE — Change of location of the bankruptcy filing; usually due to the debtor physically moving (relocating) from one part of the country to another, and bankruptcy jurisdiction needs to be changed to the new location.

CHAPTER 7 — A liquidation proceeding filed under Chapter 7 of the Bankruptcy Code by an individual, business, or other entity, where creditors are paid by liquidation and distribution of the debtor's assets, if any are available.

CHAPTER 9 — A bankruptcy proceeding for a governmental unit. In order to qualify as a debtor under Chapter 9, an entity must, among other things: be a municipality, be authorized to b e a debtor by state law, be insolvent or unable to meet its debts as they mature, and desire to effect a plan to adjust such debts.

CHAPTER 11 — A reorganization proceeding filed under Chapter 11 of the Bankruptcy Code by an individual, business, or other entity where creditors are paid under a plan. A plan can last several years; however, a large percentage end up liquidating.

CHAPTER 12 — This chapter applies to family farmers. It closely resembles a Chapter 13 but without the superdischarge. It operates under a plan. Payments are often paid seasonally.

CHAPTER 13 — This chapter applies to individuals with regular income, sole proprietors, and other self-employed individuals. Chapter 13 is a reorganization proceeding of an individual with regular income, including wage earners, where creditors are paid under a plan. Plan payments are paid through a trustee who handles all disbursements. The dismissal rate for Chapter 13 debtors is very high.

CLAIM — A right to payment even if unliquidated, contingent, or disputed. Proofs of claim may include tax liabilities which have not been assessed. Also see Proof of Claim.

C0-DEBTOR STAY — Under the Bankruptcy Code, the co-debtor stay applies only to consumer debts. It does not apply to taxes. See Consumer Debt.

COMMENCEMENT DATE — The day on which a bankruptcy petition is filed.

COMPLAINT — A pleading filed by a party to the bankruptcy case to initiate an adversary proceeding.

CONFIRMATION — The time when the court grants final approval to the debtor's plan of reorganization. Applicable only in Chapters 11, 12, and 13 bankruptcies.

CONSUMER DEBT — A debt incurred by an individual primarily for personal, family, or household purposes. Does not include taxes. See Co-Debtor Stay.

CONVERSION — When a debtor voluntarily or involuntarily changes from one chapter of bankruptcy to another chapter with the approval of the bankruptcy court.

CRAM DOWN — In the event any class of claims or interests is impaired under a plan of reorganization in Chapter 11 and does not garner the minimum percentage of votes to accept the plan, the plan's proponent may request the court to confirm the plan by the alternative cram down method. As long as at least one class of creditors approves the plan, the plan does not discriminate unfairly, and meets the fair and equitable treatment of creditors as required by the Bankruptcy Code, the court may confirm the plan.

CREDITOR — Person or entity with a claim against the debtor and/or property of the debtor at the time the bankruptcy petition is filed.

CSED — The date on which the collection statute expires is called the Collection Statute Expiration Date (CSED). The statutory period for collecting a tax is normally 10 years from the date of assessment. I.R.C. § 6502.

DEBTOR — The person or entity (corporation, partnership, municipality) that: (1) files a voluntary petition, or (2) has an order of relief entered against it when an involuntary petition is filed with the bankruptcy court.

DEBTOR-IN-POSSESSION (DIP) — The debtor in a Chapter 11 reorganization is known as a debtor-in-possession (DIP) when the debtor remains in full control of all of the assets. The DIP is charged with the duties and responsibilities of a trustee to maximize the assets of the estate for the benefit of all creditors.

DISCHARGE — A court order which extinguishes the debtor's personal liability on many pre-petition debts. It is the event that triggers forgiveness of debt in a bankruptcy case. Generally, a discharge is granted (a) in an individual debtor's Chapter 7 case 60 days after the date set for the first meeting of creditors (B.C. § 341 Meeting); (b) in a Chapter 11 case when the plan is confirmed; and (c) in Chapter 12 and 13 cases when the plan is completed (3–5 years).

DISCHARGE DATE — The date the court orders the discharge.

DISCHARGE, DENIAL OF — The situation in which a debtor goes through the bankruptcy proceeding and is still held responsible (usually for cause) for all of the pre-petition liabilities. There is no income from the forgiveness of debt because none was given. Acts like a dismissal.

DISCHARGE INJUNCTION — Under B.C. § 524, a discharge operates as an injunction against any collection action to recover discharged tax liabilities from the debtor. Damages against the IRS could result if the injunction is violated. Also see Violation of Stay.

DISCLOSURE STATEMENT — In a Chapter 11 case, an approved disclosure statement must generally accompany the proposed plan of reorganization before the plan is confirmed. The disclosure statement must contain adequate information concerning the affairs of the debtor to allow the creditors to make an informed judgment about the plan. However, for post-BRA 94 cases, electing small businesses may be subject to less stringent disclosure statement requirements. See B.C. § 1125(f).

DISMISSAL — The term used when a bankruptcy proceeding is terminated prematurely. Debts are not forgiven, and the debtor does not receive a discharge. If a bankruptcy case involving an individual is dismissed by the court, the estate is not treated as a separate entity. I.R.C. § 1398(b)(1). The debtor's tax status is treated as if a bankruptcy proceeding had not occurred. When a bankruptcy case is dismissed, the debtor is restored to the debtor’s pre-petition position. Upon dismissal, the debtor is no longer protected by the automatic stay, and the IRS can resume administrative collection.

DISTRIBUTION ORDER — A Distribution Order authorizes the case trustee to pay creditors the amounts listed in the order. It is usually prepared by the Chapter 7 case trustee and entered by the court.

ESTATE — A bankruptcy estate is created upon the filing of the bankruptcy case. It generally consists of all of the debtor’s interests in any property at the time the case is filed, plus property acquired by the estate after the petition is filed. The estate may also include a non-debtor spouse's community property interests. In an individual Chapter 7 or 11 case, the bankruptcy estate is a separate taxable entity. In Chapter 13 cases, certain assets acquired by the debtor post-petition may also be included in the estate. B.C. § 1306.

EXAMINER — An examiner may be appointed in a Chapter 11 case to investigate the financial affairs of the debtor. An examiner does not replace the debtor-in-possession as does a Chapter 11 trustee.

EXEMPT PROPERTY — This is property that is excluded by state or federal law from the estate and therefore cannot be liquidated by the trustee. However, a pre-petition federal tax lien is valid against exempt property. As a general rule, a debtor may choose between state and federal exemptions. Also, only individuals can exempt property (i.e., a homestead, vehicles, personal furnishings, etc.). Entities are not entitled to exemptions.

53 ACCOUNT (CNC) — A balance due account that is considered Currently Not Collectible (CNC). It suppresses all IDRS balance due notices. Frequently used in Chapter 7 corporate accounts and Chapter 11 liquidating bankruptcies at close of bankruptcy. Processed by use of Form 53.

FIRST MEETING OF CREDITORS (FMC) (341 Meeting) — The meeting at which the debtor is required to testify under oath about financial affairs and to respond to questions from creditors and the trustee. Usually held within 20 to 50 days after a case is commenced under any chapter of the Bankruptcy Code. It is also referred to as the Section 341 Meeting, 341 Meeting, or 341 Hearing. B.C. § 341.

FRAUDULENT CONVEYANCE — A transfer of any property by the debtor within one year before the bankruptcy petition with the intent to hinder, defraud, or delay a creditor. When brought to light, the trustee can successfully challenge the transfer and request turnover of the property to the estate. B.C. § 548.

FRESH START — Refers to the goal of bankruptcy to give the debtor a new financial life that is free from many past debts.

GAP PERIOD TAXES — Tax liabilities and penalties which accrue during the interim period after an involuntary bankruptcy case is filed and before an order for relief is entered.

GENERAL UNSECURED CLAIMS — See Unsecured General Claim.

HARDSHIP DISCHARGE — When circumstances beyond the debtor's control prevent the Chapter 13 debtor from modifying or completing the plan, the debtor can receive the same type of discharge that would have been received had the debtor been discharged in a Chapter 7 case – if certain requirements are met. B.C. § 1328(b). Chapter 12 affords a similar discharge but under more limited circumstances. B.C. § 1228(b).

INSIDER — A central figure inside an organization (i.e., an attorney or the president of a corporation), who is privy to special information about the organization. Normally, these people owe a heightened duty to the organization (sometimes called a fiduciary relationship).

INSOLVENCY — Generally understood to mean an inability to pay debts as they become due. However, the Bankruptcy Code refers to an insolvent entity as one whose debts are greater than the fair market value of its assets. B.C. § 101(32). A debtor need not be insolvent to file bankruptcy. See Bankruptcy.

INVOLUNTARY BANKRUPTCY PETITION — The situation in which creditors file a bankruptcy petition, forcing a debtor into bankruptcy involuntarily. See Bankruptcy and Order for Relief.

I.R.C. § 6020(b) — Section 6020(b) of the Internal Revenue Code allows the IRS to prepare and execute a return when a taxpayer fails to make a required return or makes a false or fraudulent return. This procedure is only used to prepare employment tax returns.

JOINT RETURN/SEPARATE BANKRUPTCY PETITIONS FILED BY EACH SPOUSE — The situation in which spouses file a joint income tax return and file separate bankruptcy petitions either on the same date or on different dates. The cases may or may not be "consolidated" into a single case.

JOINT RETURN/SINGLE PETITIONER (Petitioning and Non-Petitioning Spouse) — The situation in which spouses file a joint income tax return but only one spouse declares bankruptcy. The person who files for bankruptcy protection is known as the debtor or the petitioning spouse, and the other spouse, who does not file bankruptcy, is known as the non-debtor spouse or the non-petitioning spouse.

LEVY — An IRS enforcement tool used to attach tangible and intangible assets. A levy is not allowed against pre-petition tax liabilities when the automatic stay is in effect.

LIEN — An encumbrance on property or rights to property as security for a debt or obligation. The Service is prohibited by the automatic stay from filing a Notice of Federal Tax Lien on a pre-petition tax debt during the pendency of a bankruptcy, but a refiling of a tax lien is allowed. See NFTL.

LIFTING THE AUTOMATIC STAY — Relief obtained by a specific creditor from the bankruptcy court that lifts the injunction under B.C. § 362 against that creditor to permit a certain action, such as a right of setoff. The automatic stay is automatically terminated as to all creditors when the discharge is granted or the case is dismissed. This would occur upon the granting of a discharge or dismissal of the case.

LIQUIDATION — The act of reducing tangible and intangible assets to cash. This applies to Chapter 7 cases in which the business ceases to exist and its assets are sold. For individuals, the liquidation is limited to non-exempt assets. Some debtors attempt to liquidate through a Chapter 11 bankruptcy proceeding.

LOCAL RULES — Each bankruptcy court may make and amend its own local rules governing its practice and procedures in that specific jurisdiction. However, the local rules cannot be inconsistent with the Federal Bankruptcy Rules.

MONTHLY OPERATING REPORTS — The reports required to be filed in all Chapter 11 cases by debtors-in-possession or trustees. Generally, the reports include a cash receipts and disbursements journal, income statement, and balance sheet analysis.

NO ASSET CASE — A no asset case is one where there is no equity in the debtor’s assets available to pay unsecured creditors because all of the debtor’s assets are exempt (i.e., personal home or car), fully encumbered by secured liens, or have little value (Chapter 7). Generally, the Service and other creditors do not file claims in no asset cases, unless or until the bankruptcy trustee provides further notice that assets have been found. Bankruptcy Rule 2002(e) and 3002(c)(5).

NON-EXEMPT ASSETS — Assets which are part of the bankruptcy estate (i.e., the property available to satisfy creditors' claims). Also see Asset Case.

NON-PECUNIARY LOSS PENALTY — A non-pecuniary loss penalty is a punitive penalty, or “fine.” Examples are failure to file, failure to pay, frivolous, fraud, and willful misconduct penalties. Generally, the Service receives only minimal payments on these types of penalties.

NFTL — Notice of Federal Tax Lien. For tax purposes, a properly filed NFTL secures the tax liability up to the value of the equity in the debtor's assets. Also see Secured Claim

OBJECTION TO CLAIM — A motion filed with the bankruptcy court by a debtor, creditor, or trustee to object to all or parts of a claim. A hearing will be held to resolve the dispute. Most bankruptcy court litigation, including objections to claim are brought by motion pursuant to the less formal contested matter procedures.

180–DAY REPORTS — Each Chapter 7 trustee must submit to the United States Trustee an interim report on each asset case that was open at the beginning of the reporting period. The interim report consists of an Estate Property Record and Report and a Cash Receipts and Disbursements Record.

ORDER FOR RELIEF — The filing of a bankruptcy petition constitutes an order for relief in a voluntary bankruptcy case. In an involuntary case, the court orders relief after notice and hearing. Bankruptcy Rule 1013.

PACER — Public Access to Court Electronic Records. An electronic court notification/information system providing ready information to the public on court records. PACER maintains records and provides a current status on the majority of bankruptcy cases.

PECUNIARY LOSS PENALTY — Assessed to reimburse and compensate the government for an actual loss of taxes (i.e., the Trust Fund Recovery Penalty (TFRP)). Always treated to a priority classification on the Service's proof of claim, unless entitled to a secured position if valid lien on file.

PERSON — as used for bankruptcy purposes. Includes an individual, partnership, and corporation, but not a governmental unit. B.C. § 101(37).

PETITION DATE — The date that the bankruptcy petition was filed in the bankruptcy court.

PLAN OF REORGANIZATION — A proposed method of payment submitted by the debtor and/or other interested parties in a bankruptcy case to the bankruptcy court and creditors for review and approval. Creditors have the right to vote to accept or reject the plan. Plans are filed in Chapters 11, 12, and 13 bankruptcy proceedings.

POST-CONFIRMATION — The period that occurs after the plan is confirmed.

POST-PETITION — The period after the bankruptcy petition is filed.

POST-PETITION PRE-CONFIRMATION — The period from the petition date to the confirmation date.

POST-PETITION TAXES — Taxes incurred after the filing of the bankruptcy petition for tax periods ending after the petition date.

PREFERENCE — A pre-petition transfer of the debtor’s property to a creditor made on or within 90 days before the filing of bankruptcy (or one year if the transfer is to an insider), which enables the creditor to receive more than in a Chapter 7 liquidation. Does not apply to trust fund taxes. The trustee may avoid the transfer and recover the property for the estate unless one of several exceptions apply, including the exception for payments of debts made in the ordinary course of business. B.C. § 547.

PREPACKAGED BANKRUPTCIES — A bankruptcy which includes a plan of reorganization that the creditors negotiate and accept prior to the filing of the bankruptcy petition.

PRE-PETITION — The period of time before the bankruptcy petition was filed.

PRE-PETITION TAXES — Taxes incurred, whether or not assessed, prior to the filing of the bankruptcy petition for tax periods ending before the petition date.

PRIORITY — The concept relating to the order and the extent to which the various creditors' unsecured claims are satisfied out of the available assets of the bankruptcy estate. B.C. § 507.

PRIORITY CLAIM — A claim that has priority over other unsecured claims. B.C. § 507 sets forth the tests for priority claims, including taxes with return due dates less than three years prior to the petition date, income tax assessments made within 240 days before the petition date, income tax deficiencies that are unassessed but are assessable prior to the petition date, and trust fund taxes.

PROOF OF CLAIM — A document that a creditor files with the bankruptcy court to assert a right of payment from the bankruptcy estate for pre-petition debts. A claim can also be filed for post-petition debts in some instances (i.e., Section 1305 claims in Chapter 13).

PROPERTY OF THE ESTATE — All legal or equitable interests of the debtor at the time the bankruptcy is filed. This includes potential claims and lawsuits the debtor may yet file against a third party. It is from this estate that the trustee will liquidate assets to pay creditors. B.C. § 541.

PRO RATA — According to a calculated share; distributed proportionately.

RECEIVERSHIP — See under term Bankruptcy.

REORGANIZATION — The process through which a Chapter 11 or 13 debtor promises to resolve or pay creditors' claims.

RES JUDICATA — The principle that an existing final judgment rendered on the merits by a court of competent jurisdiction is conclusive, and bars the parties from re-litigating the same claims in another proceeding.

RULE 2004 EXAMINATION — Similar to a deposition but much broader in scope. It permits any party in interest to examine any entity about the acts, conduct, or property of the debtor, the liabilities and financial condition of the debtor, or about any matter which may affect the administration of the debtor's estate, or the debtor's right to a discharge.

SCHEDULES — After a bankruptcy is filed, all debtors must timely file: (1) a schedule of assets and liabilities, (2) a schedule of current income and current expenditures, and (3) a statement of financial affairs.

SECTION 341 FIRST MEETING OF CREDITORS — See First Meeting of Creditors.

SECURED CREDITOR — A creditor having a lien, security interest, or other encumbrance which has been properly perfected as required by law with respect to property owned by the debtor. The creditor has a secured claim to the extent of the value of the collateral or to the extent of the creditor's right to offset a mutual debt owed to the debtor against the creditor's claim against the debtor. B.C. § 506(a). For tax purposes, a properly filed Notice of Federal Tax Lien secures the tax liability up to the value of the equity in the assets. A federal tax liability may sometimes be secured because the Service has a setoff right against a debtor's right to federal tax refunds or overpayment of tax, or by amounts other federal agencies may owe the debtor.

SHORT YEAR ELECTION — The case in which an individual debtor (and spouse) have the option of filing short year income tax returns for the pre-petition and post-petition portions of the tax year. This election applies to individual taxpayers who have filed a Chapter 7 or 11 bankruptcy case. I.R.C. § 1398(d).

SOVEREIGN IMMUNITY — The doctrine that the United States is immune from suit for damages or other monetary recovery unless the United States waives its immunity from suit (i.e., by a statute permitting a damages suit against the United States).

SUBSTITUTE FOR RETURN (SFR) — A procedure by which the examination function of the IRS establishes an account and examines the records of taxpayer when the taxpayer/debtor refuses or is unable to file a return and information received by the Service indicates that a return should be filed. The Substitute for Returns (SFR) program under I.R.C. § 6212 uses Statutory Notice of Deficiency (S/N) procedures (i.e., 30–day Letter and 90–day Letter).

SUPERDISCHARGE — The discharge granted to an individual debtor upon the successful completion of a Chapter 13 plan or to a corporation or a partnership upon the effective date of a confirmed Chapter 11 plan. All pre-petition tax debts that were provided for in a Chapter 13 plan are discharged. In the case of a corporation or partnership in Chapter 11 that is not liquidating, all pre-confirmation debts, including administrative period taxes are generally discharged.

TRUSTEE — In a case under Chapters 7, 12, or 13 the trustee is the officer appointed by the United States Trustee to administer the processing of a bankruptcy case. The trustee is the representative of the bankruptcy estate and owes fiduciary duties to unsecured creditors. In a case under Chapter 11, the debtor-in-possession (DIP) generally serves as the trustee unless the court orders that a trustee be appointed. Listed are several definitions of a trustee and the corresponding Chapter(s) of bankruptcy:

• Chapter 7 trustee: A disinterested person appointed by the United States Trustee or elected by creditors to administer the Chapter 7 case. Referred to as a panel trustee or case trustee. The Chapter 7 trustee is responsible for a particular Chapter 7 case.
• Chapter 11 trustee: A Chapter 11 trustee is responsible for a particular Chapter 11 case. The trustee is appointed by the court or who has been elected by the creditors to replace the debtor-in-possession. The DIP, or the Chapter 11 trustee, is a fiduciary responsible for administering the Chapter 11 case. The United States Trustee requests that the court appoint the Chapter 11trustee after consultation with the parties in interest.
• Chapter 12 trustee: An individual appointed to serve by the United States Trustee in every Chapter 12 case. Referred to as a Chapter 12 standing trustee.
• Chapter 13 trustee: An individual appointed to serve by the United States Trustee in every Chapter 13 case. Referred to as a Chapter 13 standing trustee. The Chapter 12 and 13 standing trustees are responsible for disbursement of payments under the plans for the respective bankruptcy chapters.

UNITED STATES TRUSTEE — An employee of the Department of Justice charged with supervision of the administration of all bankruptcy cases. 28 U.S.C. § 586. The United States Trustee has a statutory right to appear and be heard on any issue in any bankruptcy case. 11 U.S.C. § 307.

UNSECURED CREDITOR — A creditor who has no perfected security interest in property of the estate to secure its claim, or no right of setoff, or to the extent the value of the creditor's collateral or right of setoff is less than the amount of the debt. B.C. § 506(a). Unsecured creditors may be either priority or general unsecured creditors.

UNSECURED CREDITORS COMMITTEE — Appointed in Chapter 11 cases by the United States Trustee. The committee is comprised of creditors willing to serve, who generally hold the largest unsecured claims, and whose claims are representative of the type of unsecured debt in the case.

UNSECURED GENERAL CLAIM — A claim that is not entitled to either secured or priority status. General unsecured creditors recover a very low percentage on their claims and sometimes recover nothing at all.

VIOLATION OF STAY — An improper collection action made during the period in which the automatic stay was in effect. Examples of collection actions that are prohibited during the automatic stay (on pre-petition tax liabilities) include the solicitation of an installment agreement, making demand for payment, or the serving of a levy. The Service can be liable for damages and attorneys fees for violations of the automatic stay, but punitive damages cannot be awarded. Also see Discharge Injunction.