Bankruptcy Terms and Glossary

Secured Creditor
A creditor holding a claim against the debtor who has the right to take and hold or sell certain property of the debtor in satisfaction of some or all of the claim.

Secured Debt
A debt when a creditor has a lien.

Set Off
A counter claim to discharge or reduce the debt.

Schedules
Detailed lists filed by the debtor along with the petition showing assets, liabilities, and other financial information.

Short Sale (of House)
A sale of an individual’s home where the proceeds fall short of what the owner still owes on the mortgage.

Skeleton Filing
Term applied when not all the proper paperwork for a bankruptcy case has been filed.

Statement of Financial Affairs
A series of questions concerning income, transfers of property, lawsuits by creditors, etc., the debtor needs to answer in writing before a bankruptcy is filed.

Statement of Intention
A declaration made by a Chapter 7 debtor regarding plans for dealing with consumer debts that are secured by property of the estate.

Substantial Abuse
Taking frequent requests regarding an individual debtor to file a bankruptcy petition.

Substantive Consolidation
Putting the assets and liabilities of two or more related debtors into a single pool to pay creditors.