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LSDefine

Simple English definitions for legal terms

hypothetical creditor

Read a random definition: singles' penalty

A quick definition of hypothetical creditor:

A hypothetical creditor is someone who might be owed money by a person or company. They are not a real creditor yet, but they could become one in the future. For example, if someone owes money to a lot of people, a hypothetical creditor is someone who might come forward and say they are owed money too. It's important to consider hypothetical creditors when dealing with debts and bankruptcy.

A more thorough explanation:

A hypothetical creditor is a term used in bankruptcy law to refer to a creditor who is not real but is created by the court to determine the priority of claims in a bankruptcy case. This creditor is hypothetical because it does not actually exist, but it is used to determine how much money each real creditor will receive.

For example, if a debtor owes money to several creditors and files for bankruptcy, the court will create a hypothetical creditor to determine which creditors get paid first. The court will look at the debtor's assets and debts and determine how much money each creditor is owed. The hypothetical creditor is used to determine the order in which the real creditors will be paid.

Another example of a hypothetical creditor is a code-created judicial-lien creditor or bona fide purchaser who establishes a bankruptcy trustee's status under the Bankruptcy Code's priority scheme, claiming property through the debtor at the time of the bankruptcy filing.

Overall, a hypothetical creditor is a tool used by the court to determine the priority of claims in a bankruptcy case. It is not a real creditor, but it helps to ensure that all creditors are treated fairly and receive the money they are owed.

hypothetical contract | hypothetical lien creditor

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HopefullyInLawSchool
16:06
it means you will not be rejected today and may be accepted or WL in the future
Just got my Michigan rejection
BookwormBroker
16:10
same
RoaldDahl
16:10
@HopefullyInLawSchool: what if i already got rejected. does it mean anything
HopefullyInLawSchool
16:12
@RoaldDahl: Likely not however it could mean nothing
RoaldDahl
16:15
So if it means nothing does that mean something?
HopefullyInLawSchool
16:17
Possibly
RoaldDahl
16:26
Cool
RoaldDahl
16:26
thank you!!!! i hope it means something
pinkandblue
16:31
fart
IrishDinosaur
16:36
Mich R gang lesgooo
Did anyone else get that random get to know nova email?
HopefullyInLawSchool
17:21
Ya it was sent to all YM applicants
starfishies
17:37
Anyone get the NDLS email inviting you to apply for something even though they haven’t made a decision on your app yet
17:38
Better yet I got the email and I was rejected last month
starfishies
17:38
Wtf
starfishies
17:39
and the deadline is in like a week what is this
any cardozo movement?
BatmanBeyond
18:01
Sent a LOCI via portal, but I'm wondering if email would have gotten me a swifter response
BatmanBeyond
18:02
This whole hold/wait-list/reserve system is a headache
loci already?
BatmanBeyond
18:09
If the odds are like 1-2% I don't think it matters much by the numbers
12:11
I got the same NDLS email
OrangeThing
12:18
I think the user profiles are broken
19:29
Any word out of Notre Dame?
19:29
Only the invitation to apply for LSE
19:29
Anyone received a decision from NDLS?
19:50
when did u guys apply that just heard from umich? they havent even glanced at my app yet
0:30
how am i supposed to spy on people when profile links are broken?
Right. Broken links smh
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