CACB — Bankruptcy Forms for Non-Individuals

Source: https://www.cacb.uscourts.gov/sites/cacb/files/documents/forms/instructions_non-individuals.pdf

Instructions

For Bankruptcy Forms for Non-Individuals

U.S. Bankruptcy Court | December 2015 (Rev.
April 2025)

General Instructions ............................................................................................... 2

Overview of the bankruptcy forms and filing bankruptcy ................................................................ 3

Follow these privacy restrictions ..................................................................................................... 3

Understand the terms used in the forms......................................................................................... 3

Things to remember when filling out and filing these forms ............................................................ 3

Filing amended forms ..................................................................................................................... 3

On what date was a debt incurred? ................................................................................................ 3

About the Process for Filing a Bankruptcy Case for Non-Individuals ................................................ 4

Instructions for Selected Forms ............................................................................. 6

Schedule A/B: Real and Personal Property (Official Form 206A/B) .................................................. 7

Schedule D: Creditors Who Have Claims Secured by Property (Official Form 206D) ....................... 9

Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 206E/F) .............................. 11

Schedule G: Executory Contracts and Unexpired Leases (Official Form 206G) ............................. 14

Glossary ................................................................................................................. 15

Definitions Used in the Forms for Non-Individuals Filing for Bankruptcy ......................................... 16

page 1

General Instructions

This document provides instructions for because information needed in a bankruptcy completing selected forms that entities other case is often different from that prescribed than individuals and municipalities filing for under generally accepted accounting principles. bankruptcy must submit to the U.S. Bankruptcy These instructions highlight some of the Court. All of the required forms can be differences between the bankruptcy documents downloaded without charge from: and accounting records. Debtors should complete all of the information required to thehttp://www.uscourts.gov/FormsAndFees/Forms/ best of their ability.BankruptcyForms.aspx. These instructions are not a substitute for legalThe instructions are designed to accompany the advice about bankruptcy and the requiredforms and are intended to help in understanding forms. Completing the forms is only a part ofwhat information is required to properly file. the bankruptcy process.The representatives of the debtor working on the forms should review each form and any Non-individual debtors must have an attorney to pertinent instructions before supplying the file for bankruptcy. Although the attorney may information for each form. prepare the forms using information supplied by the debtor, representatives of the debtor mustAlthough the forms often parallel how ensure that the forms are accurate and completebusinesses commonly keep their financial and must sign the forms under penalty ofrecords, it is not always possible to do so perjury.

Read This Important Warning

Non-individual debtors must be represented by an attorney.

Bankruptcy can have serious long-term financial and legal consequences, including loss of property. Only an attorney can give legal advice regarding the possible consequences of filing for bankruptcy and the various options that are available.

Entities may not file bankruptcy if they are not eligible to file or do not intend to file the documents necessary to complete the bankruptcy.

Bankruptcy fraud is a serious crime. Making a false statement, concealing property, or obtaining money or property by fraud in connection with a bankruptcy case can result in fines up to $500,000 or imprisonment for up to 20 years, or both. 18 U.S.C. §§ 152, 1341, 1519, and 3571.

General Instructions page 2

Overview of the bankruptcy forms Understand the terms used in the and filing bankruptcy forms

Use the forms in the 200 series if the debtor is a To understand terms used in the forms and the non-individual, such as a corporation, instructions, see the Glossary at the end of this partnership, or limited liability company (LLC). document. Forms in the 100 series are used by individuals or married couples. Sole proprietors must use Things to remember when fillingthe forms in the 100 series. out and filing these forms When a bankruptcy petition is filed, the U.S. Be as complete and accurate as possible.Bankruptcy Court opens a case. It is important that the answers to the questions on the forms If more space is needed, attach a separatebe complete and accurate so that the case sheet to the form. On the top of any pagesproceeds smoothly. A person who gives false added, write the debtor’s name and caseinformation in connection with a bankruptcy number, if known. Also identify the formcase could be charged with a federal crime, and and line number to which the additionalthe debtor may lose the benefits of filing for information applies.bankruptcy. Do not file these instructions with the Filing a bankruptcy case is not private. Anyone bankruptcy forms that the debtor files with has a right to see a debtor’s bankruptcy forms the court. after the debtor files them. In some circumstances, the bankruptcy court may issue a For the debtor’s records, be sure to keep a protective order to keep trade secrets or other copy of the debtor’s bankruptcy documents confidential proprietary information from being and all attachments that the debtor files. disclosed to the public. 11 U.S.C. § 107 and Bankruptcy Rule 9037. Filing amended forms

Follow these privacy restrictions Check the box on the top of the form to show that the debtor is submitting an amendment. Do not list a minor child’s full name on any form. Instead, fill in only the child’s initials and the full name and address of the child’s On what date was a debt incurred? parent or guardian. For example, write A.B., When a debt was incurred on a single date, fill a minor child (John Doe, parent, 123 Main in the actual date that the debt was incurred. St., City, State). 11 U.S.C. § 112; Bankruptcy Rules 1007(m) and 9037. When a debt was incurred on multiple dates, fill Do not list a person’s date of birth. in the range of dates. For example, if the debt is from a credit card, fill in the month and year of Do not list anyone’s full Social Security the first and last transactions, if known. number on any form.

General Instructions page 3

About the Process for Filing a Bankruptcy Case for Non-Individuals

To file for bankruptcy, the debtor must give the court several forms and documents. Some must be filed at the time the debtor files the case. Others may be filed up to 14 days later.

When the debtor files its bankruptcy case

The debtor must file the forms listed below on the date the debtor files its bankruptcy case. For copies of the forms listed here, go to http://www.uscourts.gov/FormsAndFees/Forms/BankruptcyForms.aspx.

Voluntary Petition for Non-Individuals Filing Form 204). Fill out this form only if the for Bankruptcy (Official Form 201). This debtor files under chapter 11. form opens the case. Directions for completing it are included in the form itself. Attachment to Voluntary Petition for Non-Individuals Filing for A list of names and addresses of all of the Bankruptcy Under Chapter 11 (Official debtor’s creditors, formatted as a mailing list Form 201A). This form is filed only by according to instructions from the bankruptcy non-individual debtors who file under court in which the debtor files. (The chapter 11 and who are required to file bankruptcy court may call this a creditor periodic reports (for example, Forms matrix or mailing matrix.) 10K and 10Q) with the Securities and Exchange Commission pursuant to Chapter 11 Cases: List of Creditors Who Section 13 or 15(d) of the Securities Have the 20 Largest Unsecured Claims Exchange Act of 1934. Against Debtor and Are Not Insiders (Official

When the debtor files its bankruptcy case or within 14 days after filing

The debtor must file the forms listed below with its Voluntary Petition for Non-Individuals Filing for Bankruptcy (Official Form 201) or within 14 days, or such additional time as the court may order, after filing. If the debtor does not do so, the case may be dismissed. Although it is possible to open a case by submitting only the documents listed under When the debtor files its bankruptcy case, the debtor should file the entire set of forms at one time to help its case proceed smoothly. The debtor must fill out all of the forms completely even though some forms may ask similar questions. The list below identifies the documents that all non-individuals must file as well as those that are specific to each chapter. For copies of the official forms, go to http://www.uscourts.gov/FormsAndFees/Forms/BankruptcyForms.aspx.

About the Process for Filing a Bankruptcy Case for Non-Individuals page 4

All non-individuals who file for bankruptcy must If a small business debtor files under chapter 11, file these forms and the forms for the specific the debtor must also file: chapter:

If the debtor files under chapter 11 and Schedules of Assets and Liabilities (Official

meets the criteria and debt limits outlined in Form 206) which includes these forms: 11 U.S.C. § 101(51D), the debtor qualifies

Schedule A/B: Real and Personal Property as a small business debtor and must file with (Official Form 206A/B) the petition its most recent Schedule D: Creditors Who Have Claims balance sheet, Secured by Property (Official Form 206D) statement of operations, Schedule E/F: Creditors Who Have cash-flow statement, and Unsecured Claims (Official Form 206E/F) federal income tax return. Schedule G: Executory Contracts and Unexpired Leases (Official Form 206G) If the debtor does not have these documents, the debtor must file a statement made under penalty Schedule H: Codebtors (Official of perjury that the debtor has not prepared either Form 206H) a balance sheet, statement of operations, or cash- Summary of Assets and Liabilities flow statement or the debtor has not filed a for Non-Individuals (Official Form federal tax return. 206Sum). This form gives an overview of the totals on the schedules.

Declaration Under Penalty of Perjury for Non-Individual Debtors (Official Form 202– Declaration)

Statement of Financial Affairs for Non-Individuals Filing for Bankruptcy (Official Form 207)

Disclosure of Compensation to Debtor’s Attorney Unless local rules provide otherwise, Director’s Form 2030 may be used.

About the Process for Filing a Bankruptcy Case for Non-Individuals page 5

Instructions for Selected Forms

Instructions for Selected Forms page 6

Schedule A/B: Real and Personal Property (Official Form 206A/B)

Schedule A/B: Assets – Real and Personal Understand the terms used in this form Property (Official Form 206A/B) requires debtors to list most of the property interests that Current value are involved in a bankruptcy case. All debtors In this form, the debtor must report the currentfiling for bankruptcy must honestly list value of the debtor’s interest in any propertyeverything they own or in which they have a that it owns in each category. Current value islegal, equitable, or future interest. Legal, sometimes called fair market value and, for thisequitable, or future interest are broad terms and form, it is the fair market value as of the date ofinclude all kinds of property interests in both filing the bankruptcy petition. Current value istangible and intangible property, whether or not how much the property is currently worth,anyone else has an interest in that property. which may be more or less than the amount the The information in this form is grouped by asset debtor paid for the property or the book value of category and, in general, follows the layout and the property. order of liquidity found in a balance sheet. Examples are included for some items and are meant to give debtors an idea of what to include Valuation method used for current value in the categories. The examples are not intended to be complete lists of everything within that In certain asset categories, the debtor must also category. provide the valuation method used to calculate the current value. Select a reasonable method An authorized representative of the debtor must that provides an accurate estimation of current verify under penalty of perjury that the value. information provided is true and correct. Bankruptcy Rule 1008. Examples of valuation methods may include:

If the debtor makes a false statement or Appraisal (provide the date the appraisal was conceals property, the debtor may be fined up to conducted); $500,000 or be imprisoned for up to 20 years or Comparable sales (for example, blue-book both. 18 U.S.C. §§ 152, 1341, 1519, and 3571. values or comparable sales provided by a broker); Revenue-based (for example, present value of revenue streams calculated for a hotel or apartment complex based on rents and available rooms);

Schedule A/B: Real and Personal Property (Official Form 206A/B) page 7

Liquidation value (for example, the price of Depreciation and amortization expenses are the property when it is not allowed sufficient calculated using accounting procedures that allocate the cost of certain property over its time to sell in the open marketthis figure useful life. It represents the decline in value is typically provided by a professional); over time due to wear and tear, obsolescence, or Expert (for example, an accountant or other factors. advisor who has special expertise with regard to the property); How to list items on this form Replacement value (the cost of replacing the property); List items only once on this form; do not list Tax records (for example, the value assessed an item in more than one category. If an on the property by the county appraisal); item could fit into more than one category, select the category the debtor thinks is the Recent cost-based valuations (for example, most suitable and list the item there. For first-in first-out inventory valuation example, a car dealership may report method). vehicles under Part 4: Inventory instead of under Part 8: Machinery, equipment, and vehicles.Net book value of debtor’s interest (where available) List property held for resale in Part 4: Inventory. If the debtor separates If the debtor does not prepare a balance sheet manufactured items into raw materials, work for its financial records or for its tax returns, in progress, and finished goods, report those then it does not need to provide information in items in the categories provided as this column. appropriate. If the debtor only purchases items and holds them for resale and does not If the debtor prepares a balance sheet for its do any manufacturing, then report the items financial records or for its tax returns, then it under finished goods, not as raw materials or must also provide the net book value of debtor’s work in progress. interest for certain types of property. For The values reported on this form must matchpurposes of this form, use the book value the values reported on Schedule D:reported on the most recent balance sheet Creditors Who Have Claims Secured byprepared before filing this case. Property (Official Form 206D). Net book value is the carrying value of an asset In Schedule A/B, list any executory on the debtor’s books or financial records and is contracts or unexpired leases (for example, generally calculated by taking the original cost an unexpired lease for a building, a real of the property and subtracting depreciation or estate listing agreement, or leases for amortization expenses (if any). machinery or equipment). Also list them on Schedule G: Executory Contracts and Unexpired Leases (Official Form 206G).

Schedule A/B: Real and Personal Property (Official Form 206A/B) page 8

Schedule D: Creditors Who Have Claims Secured by Property (Official Form 206D)

The people or organizations to whom the debtor A claim is unliquidated if the amount of the debt owes money are called its creditors. A claim is a cannot be readily determined, such as by creditor’s right to payment. referring to an agreement or by a simple computation. An unliquidated claim is one for Creditors may have different types of claims: which there may be a definite liability but where the amount of the claim has not been determined. Secured claims. Report these on Schedule D: Creditors Who Have Claims Secured by A claim is disputed if the debtor disagrees that it Property (Official Form 206D). owes all or a portion of the debt. Unsecured claims. Report these on A single claim can have one, more than one, or Schedule E/F: Creditors Who Have none of these characteristics. Unsecured Claims (Official Form 206E/F).

Creditors with secured claims may be able to get Do not omit any secured creditorspaid from specific property in which that creditor has a security interest, such as a mortgage or a In alphabetical order, list all creditors that havelien. That property is sometimes called collateral judgment liens, garnishments, statutory liens,for the debt. Creditors with unsecured claims do mortgages, deeds of trust, and purchase moneynot have rights against specific property, or the security interests or other consensual liensspecific property in which the creditor has rights against property of the debtor. These categoriesis not worth enough to pay the creditor in full. can be used to describe the lien.

The form is divided into parts. List a debt in

Claims may be contingent, unliquidated, Part 1 only once and list any other entities that or disputed should be notified about that debt in Part 2. For example, if an attorney is trying to collect a debt Many claims have a specific amount which the that the debtor owes to someone else, list the debtor clearly owes. But some claims are person to whom the debtor owes the debt in uncertain or become due only after the Part 1 and list the attorney in Part 2. bankruptcy petition is filed. All claims must be listed in the schedules, even if they are contingent, unliquidated, or disputed. A claim is contingent if the debtor is not obligated to pay it unless a particular event occurs after the bankruptcy petition is filed.

Schedule D: Creditors Who Have Claims Secured by Property (Official Form 206D) page 9

Determine the amount of each secured List a creditor in Schedule D even if it appears creditor’s claim or claims that no value exists to support that creditor’s secured claim, as long as the creditor has a To determine the amount of a secured claim, security interest in some property owned by the compare the amount of the claim to the value of debtor. If the claim is secured only by property the debtor’s interest in the property that is owned by a non-debtor, list the claim in collateral for the claim. If that value is greater Schedule E/F. than the amount of the claim, then the entire amount of the claim is secured. If there is more than one secured claim against the same property, the amount of the claim that If the value of the property that is collateral for is entitled to be paid first must be subtracted the claim is less than the amount of the claim, from the property value to determine how much the difference is unsecured. value remains for the next claim.

For example, if the outstanding balance due on For example, if a building worth $300,000 has a an equipment loan is $100,000 and the first mortgage of $200,000 and a second equipment is worth $80,000, the lender has a mortgage of $150,000, the first mortgage would secured claim of $80,000 and an unsecured claim be fully secured, and there would be $100,000 of of $20,000. In that situation, list the creditor only property value for the second mortgage, and the once on Schedule D: Creditors Who Have claim secured by the second mortgage would Claims Secured by Property (Official Form have an unsecured portion of $50,000. 206D). Do not list the creditor again on Schedule E/F: Creditors Who Have Unsecured $300,000 value of a building Claims (Official Form 206E/F). In addition, if - $200,000 first mortgage the case is a chapter 11 case and the creditor’s $100,000 remaining property value unsecured claim makes it one of the 20 largest unsecured creditors, the creditor must also be $150,000 second mortgage included on Chapter 11 or Chapter 9 Cases: List - $100,000 remaining property value of Creditors Who Have the 20 Largest $ 50,000 unsecured portion of second mortgage claim Unsecured Claims Who Are Not Insiders (Official Form 204).

Schedule D: Creditors Who Have Claims Secured by Property (Official Form 206D) page 10

Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 206E/F)

The people or organizations to whom the debtor 206D). Do not list the creditor again on owes money are called its creditors. A claim is Schedule E/F: Creditors Who Have Unsecured a creditor’s right to payment. Claims (Official Form 206E/F).

Creditors may have different types of claims: List a creditor in Schedule D even if it appears that no value exists to support that creditor’s Secured claims. Report these on Schedule D: secured claim. Creditors Who Have Claims Secured by Property (Official Form 206D). Unsecured claims. Report these on Claims may be contingent, unliquidated, Schedule E/F: Creditors Who Have or disputed Unsecured Claims (Official Form 206E/F). Many claims have a specific amount which the Creditors with unsecured claims do not have rights debtor clearly owes. But some claims are against specific property, or the specific property uncertain or become due only after the date the in which the creditor has rights is not worth bankruptcy petition is filed. All claims, whether enough to pay the creditor in full. they are certain or uncertain as of the date of the filing, must be listed in the schedules, even if Use Schedule E/F: Creditors Who Have the claims are contingent, unliquidated, or Unsecured Claims (Official Form 206E/F) to disputed. identify everyone who holds an unsecured claim against the debtor as of the date the bankruptcy A claim is contingent if the debtor is not petition is filed unless that creditor is already listed obligated to pay it unless a particular event on Schedule D: Creditors Who Have Claims occurs after the petition is filed. Secured by Property (Official Form 206D). A claim is unliquidated if the amount of the Creditors with secured claims have a right to debt cannot be readily determined, such as by take property from the debtor if the debtor does referring to an agreement or by a simple not pay them. They should be listed on computation. An unliquidated claim is one for Schedule D: Creditors Who Have Claims which there may be a definite liability but Secured by Property (Official Form 206D). where the amount of the claim has not been set. If a secured creditor’s full claim exceeds the A claim is disputed if the debtor disagrees that value of the property securing that claim, the it owes all or a portion of the debt. creditor may have a secured claim for the value of the property and an unsecured claim for the A single claim can have one, more than one, or deficiency. In that situation, list the creditor none of these characteristics. only once on Schedule D: Creditors Who Have Claims Secured by Property (Official Form

Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 206E/F) page 11

Unsecured claims may be either priority is a priority claim.* 11 U.S.C. § 507(a)(6). or nonpriority claims Deposits by individuals — If the debtor obtained from an individual a deposit for the What are priority unsecured claims? purchase, lease, or rental of property or In bankruptcy cases, priority unsecured claims services for the individual or the individual’s are those debts that the Bankruptcy Code family, the deposit may be a priority claim. requires to be paid before most other unsecured Unredeemed gift certificates are deposits. claims are paid. The most common priority The priority is limited to $3,800.* unsecured claims are certain tax debts. Priority 11 U.S.C. § 507(a)(7). unsecured claims include those the debtor owes Other categories exist.for: Taxes and certain other debts owed to the What are nonpriority unsecured claims? government—If the debtor owes certain federal, state, or local government taxes, Nonpriority unsecured claims are those debts customs duties, or penalties. that generally will be paid after priority 11 U.S.C. § 507(a)(8). unsecured claims are paid. The most common examples of nonpriority unsecured claims are Wages, salaries, and commissions—If the trade debts, bank loans, contract obligations, debtor owes wages, salaries, and and fees for professional services. commissions, including vacation, severance, and sick leave pay and those amounts were In Part 2, list every creditor owed money by the earned within 180 days before the debtor not listed before, regardless of the bankruptcy petition was filed or the debtor amount and even if the debtor plans to pay a ceased business. In either instance, only the particular debt. first $17,150 per claim is a priority claim.* 11 U.S.C. § 507(a)(4). What if a claim has both priority and Contributions to employee benefit plans—If nonpriority amounts? the debtor owes contributions to an employee benefit plan for services an If a claim has both priority and nonpriority employee rendered within 180 days before amounts, list that claim in Part 1 and show both the bankruptcy petition was filed, or within priority and nonpriority amounts. Do not list it 180 days before the debtor ceased business. again in Part 2. Only the first $17,150 per employee, less any amounts owed for wages, salaries, and On what date was a debt incurred? commissions, is a priority claim.* When a debt was incurred on a single date, fill 11 U.S.C. § 507(a)(5). in the actual date that the debt was incurred. Certain claims of farmers and fishermen— Only the first $8,450 per farmer or fisherman When a debt was incurred on multiple dates, fill in the range of dates. For example, if the debtor

• Subject to adjustment on 4/1/28, and every 3 years after that for cases begun on or after the date of adjustment. Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 206E/F) page 12

has a line of credit with multiple draws, fill in transactions, if known. the month and year of the first and last

Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 206E/F) page 13

Schedule G: Executory Contracts and Unexpired Leases (Official Form 206G)

Use Schedule G: Executory Contracts and real property; Unexpired Leases (Official Form 206G) to identify the debtor’s ongoing leases and certain Service provider agreements (for example, contracts. List all of the debtor’s executory maintenance contracts for office contracts and unexpired leases. equipment, and contracts for cell phones, personal electronic devices, internet, and Executory contracts are often described as cable); contracts between the debtor and another party in which neither party has performed all of the Sales contracts; requirements by the time the debtor files for Supplier or service contracts;bankruptcy. Unexpired leases are leases that are still in effect. Leases or timeshare contracts; The debtor must list all agreements that may Employment contracts;be executory contracts or unexpired leases, even if they are listed on Schedule A/B: Real estate listing agreements; Property (Official Form 206A/B) or Schedule E/F: Creditors Who Have Intellectual property license agreements Unsecured Claims, (Official Form 206 E/F) (such as copyright, patent, trademark, and including the following: industrial rights); Equipment leases; Development contracts; and Vehicle leases; Insurance contracts. Leases for business or investment property State the contract number of any government (for example, office or warehouse space); contract. Contracts to sell a building, land, or other

Schedule G: Executory Contracts and Unexpired Leases (Official Form 206G) page 14

Glossary

Glossary page 15

Definitions Used in the Forms for Non-Individuals Filing for Bankruptcy

Here are definitions for some of the important terms used in the forms for non-individuals who are filing for bankruptcy. See Bankruptcy Basics (http://www.uscourts.gov/FederalCourts) for more information about filing for bankruptcy and other important terms.

Affiliate — As used in the Bankruptcy Code Amortization — 1. A non-cash accounting and Rules, an affiliate of the debtor is: method that allocates the cost of an intangible (a) an entity that directly or indirectly owns, asset over its useful life. 2. Paying off a controls, or holds with power to vote at liability in regular installments over a period least 20% of the outstanding voting of time. securities of the debtor (excluding entities that hold such securities in a fiduciary or Amortization schedule — A report that contains agency capacity without sole discretionary a listing of intangible assets and the amount of power to vote such securities or solely to amortization and accumulated amortization secure a debt, if the entity has not in fact that has been allocated over the life of those exercised such power to vote); assets. These reports are typically maintained (b) a corporation 20% or more of whose for purposes of calculating tax deductions and outstanding voting securities are directly preparing tax returns. or indirectly owned, controlled, or held with power to vote, by the debtor, or by an Annuity — A contract for the periodic entity that directly or indirectly owns, payment of money, either for the life of the controls, or holds with power to vote, 20% recipient or for a fixed number of years. or more of the outstanding voting securities of the debtor (again excluding Book value or net book value — The carrying entities that hold such securities in a value of an asset on the debtor’s books or fiduciary or agency capacity without sole financial records. This amount is generally discretionary power to vote such securities calculated by taking the original cost of the or solely to secure a debt, if the entity has property and subtracting depreciation or not in fact exercised such power to vote); amortization expenses (if any). (c) a person whose business is operated under a lease or operating agreement by a Causes of action — Claims where the debtor debtor, or person substantially all of asserts money or other relief from a third party whose property is operated under an or where a third party is entitled to money or operating agreement with the debtor; or other relief from the debtor. (d) an entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.

Definitions Used in the Forms for Non-Individuals page 16

Claim — A creditor’s right to payment, even if Depreciation schedule — A report that contingent, disputed, unliquidated, or contains a listing of tangible assets and the unmatured. amount of depreciation and accumulated depreciation that has been allocated over the life of those assets. These reports are typicallyCodebtor —A person or entity that may also maintained for purposes of calculating taxbe responsible for paying a claim against the deductions and preparing tax returns.debtor.

Discharge — A discharge in bankruptcyCollateral — Property that secures a debt. relieves a debtor from having to pay certain debts. For non-individuals, it applies only in

Contingent claim — Debt that is only payable certain chapter 11 and chapter 12 cases. if certain events occur.

Disputed claim —A claim about which there is

Creditor matrix or mailing matrix — A list of a disagreement. A claim is disputed if the names and addresses of all of the debtor’s debtor disagrees that he or she owes all or a creditors, formatted as a mailing list according portion of the debt. to instructions from the bankruptcy court in which the debtor files the case. Doubtful or uncollectible accounts — Receivables that the debtor has little or no Creditor — The person or organization to expectation of collecting. This amount is whom the debtor owes money. deducted from total receivables to calculate the amount that the debtor reasonably expects Current value or fair market value — how will be collected on its receivables. much the property is worth, which may be more or less than the purchase price or the Executory contract — Often described as a book value. See the instructions for specific contract between the debtor and another party forms regarding whether the value requested is as to which neither the debtor nor the other as of the date of the filing of the petition, the party has performed all of the requirements by date the debtor completes the form, or some the time the bankruptcy case is filed. other date.

Goodwill — Amount of a purchase price that

Debt — Liability on a claim. exceeds the net tangible assets. It can also be the value of an intangible asset that has a Depreciation — A non-cash accounting quantifiable value in business. Examples method that allocates the cost of a tangible include a strong brand or reputation or, in an asset over its useful life. acquisition, goodwill.

Definitions Used in the Forms for Non-Individuals page 17

Gross income — A company’s gross revenue Negotiable instrument — A written and signed minus cost of goods sold. unconditional promise or order to pay a specified sum of money on demand or at a definite time payable to order or bearer.Gross revenue — Amount generated by all of Negotiable instruments include governmenta company’s operations before deductions for bonds, corporate bonds, personal checks,expenses. cashiers’ checks, promissory notes, and money orders. Insider — Insiders include officers, directors, and anyone in control of a corporate debtor Net operating loss (NOL) — Occurs whenand their relatives; general partners of a allowable tax deductions exceed taxablepartnership debtor and their relatives; affiliates income, resulting in negative taxable income.of a debtor and insiders of such affiliates, and NOLs can generally be used to recover pastany managing agent of a debtor. tax payments (carry-back) or reduce future tax11 U.S.C. § 101. payments (carry-forward). Intangible assets — Types of property that are Non-individual debtor — A non-individualnot physical in nature and cannot be touched, entity such as a corporation, partnership, orseen, or held. Examples include intellectual limited liability company (LLC), on whoseproperty and name recognition. behalf or against whom a bankruptcy case is filed. Intellectual property — An intangible asset that consists of human knowledge and ideas. Non-negotiable instrument — FinancialExamples include patents, copyrights, instrument that cannot be transferred totrademarks, and software. another party by signing or delivering it. Legal or equitable interest — Any interest of Nonpriority unsecured claim — Debt thatthe debtor in property, whether tangible or generally will be paid after priority unsecuredintangible, and whether or not anyone other claims are paid. Examples include amountsthan the debtor also has an interest in that due for products purchased, professionalproperty. services, and utilities. Lien — A charge against or interest in Priority unsecured claim — Debt that theproperty to secure a debt. Bankruptcy Code requires to be paid before most other unsecured claims are paid. Nature of claim — The legal type of a claim, Examples include certain income tax debts not the factual basis for it. Examples include and certain employee wage claims. breach of contract, personal injury, malpractice, and fraud.

Definitions Used in the Forms for Non-Individuals page 18

Secured claim — A claim that may be satisfied Tangible asset — Types of property that have in whole or in part either physical form and can be seen, touched, or held. Examples include cash, machinery, through collateral, buildings, and land. through a charge against or an interest in the debtor’s property, or Unexpired lease — Lease that is in effect at the through a right of setoff. time the bankruptcy petition is filed.

Setoff — Occurs when a creditor pays itself Unliquidated claim — A debt for which the with money belonging to the debtor that it is amount cannot be readily determined, such as holding, or by canceling a debt it owes to the by referring to an agreement or by a simple debtor. computation.

Sole proprietorship — A business that a debtor owns as an individual, rather than a separate legal entity such as a corporation, partnership, or LLC. Sole proprietors must use the bankruptcy forms in the 100 series.

Definitions Used in the Forms for Non-Individuals page 19