Abandonment: The act of a trustee relinquishing possession and control of property out of the estate and giving it back to the debtor.
Absolute priority rule: In a Chapter 11 case, the rule that no junior class of claims or interests may receive anything of value from the estate unless a more senior non-accepting class of unsecured claims or interests is paid in full.
Accountant: A person authorized under applicable law to practice public accounting.
Action or civil action: An adversary proceeding or a contested petition or proceedings to vacate an order for relief or to determine any other contested matter.
Adequate protection: Security, collateral or some other measure undertaken or provided by the debtor in bankruptcy, to protect a claim holder from depreciation of its collateral pending confirmation of a plan, for the period during which the debtor has continued possession or use of the collateral.
Administrative expenses: Actual and necessary costs and expenses involved in preserving an estate, including wages, salaries, or commissions for services rendered.
Adversary matter: A dispute in a bankruptcy proceeding that may be adjudicated by means of an adversary proceeding (lawsuit) filed in bankruptcy court.
Allowed claim: A claim or debt deemed allowed in a bankruptcy case
Antecedent debt: A debt that is accrued or acquired prior to the debtor making a payment to the creditor on account of the debts
Anti-alienation clause: A term or provision of a trust that forbids transfer of the debtor’s beneficial interest in the trust to another.
Assignment: A transfer of a right or property and duties in connection with a contract, to another.
Assumption: A debtor or the estate may assume or reject a lease or executory contract; the act of continuing to be responsible for the lease or contract.
Avoidance of lien: The act of obtaining a release from the effect of a lien, judgment or security interest in property, typically in connection with exempt property but also on any grounds provided by the Bankruptcy Code.
Avoidance powers: The trustee’s or debtor’s powers to avoid a lien.