Most debtors who file a bankruptcy petition,
and many of their creditors, know very little about the bankruptcy
process. Bankruptcy Basics is designed to provide debtors,
creditors, judiciary employees, and the general public with a
basic explanation of bankruptcy and how it works. This glossary of
bankruptcy terminology explains, in laymanís terms, many of the
legal terms that are used in cases filed under the Bankruptcy
adversary proceeding: A lawsuit
arising in or related to a bankruptcy case that is commenced by
filing a complaint with the court. A nonexclusive list of
adversary proceedings is set forth in Fed. R. Bankr. P. 7001.
assume: An agreement to continue
performing duties under a contract or lease.
automatic stay: An injunction that
automatically stops lawsuits, foreclosures, garnishments, and all
collection activity against the debtor the moment a bankruptcy
petition is filed.