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LSDefine

Simple English definitions for legal terms

claim in bankruptcy

Read a random definition: separation from bed and board

A quick definition of claim in bankruptcy:

A claim in bankruptcy is when a person or company says they are owed money by someone who has filed for bankruptcy. They have to ask for the money they are owed by filing a claim in court. But just because they ask for the money doesn't mean they will get it. Sometimes there isn't enough money to pay everyone who is owed. The government gets paid first, and then other people might get some money if there is any left.

A more thorough explanation:

A claim in bankruptcy is a request made by a creditor to receive a portion of the assets of an estate that has filed for bankruptcy. Creditors file a claim in bankruptcy to recover the money owed to them by the debtor. However, filing a claim does not guarantee that the creditor will receive the full amount owed to them.

For example, if the bankrupt estate has limited funds, the government's debt will be prioritized over unsecured private debt. This means that the creditor may not be able to recover the full amount owed to them.

The Department of Justice defines claims in bankruptcy as:

  • A right to payment, whether or not reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured; or
  • A right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured.

For instance, if a person owes a creditor $10,000 and files for bankruptcy, the creditor can file a claim in bankruptcy to recover the money owed to them. However, if the bankrupt estate only has $5,000 in assets, the creditor may only receive a portion of the amount owed to them.

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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