In bankruptcy, a reaffirmation is an agreement that a debtor and a creditor enter into after a debtor has filed for bankruptcy, in which the debtor agrees to repay all or part of an existing debt after the bankruptcy proceedings are over and the...
bankruptcy
redeem
Redeem has multiple definitions:
In bankruptcy, the debtor’s right to repurchase property they previously owned but another acquired in a forced sale by a creditor. 11 U.S.C. § 722 lays out the process through which a debtor may redeem property...redemption
See redeem.
[Last updated in May of 2024 by the Wex Definitions Team]
reorganization
Reorganization is: 1) The implementation of a business plan to alter a corporation’s structure or finances because of financial duress, a desire to change strategy, or a government order. It may involve, among other tactics, changes in assets...
secured transactions
Secured Transaction Law: An Overview
A security interest arises when, in exchange for a loan, a borrower agrees in a security agreement that the lender (the secured party) may take specified collateral owned by the borrower if he or she should...
senior lien
Senior lien refers to security interests in an investment that get repaid before other liens. Typically, senior liens are the first liens issued with debt on an investment. Later investors also have a lien on the property, but if the debtor...
subprime loan
A subprime loan is a loan made to a borrower who is not eligible for the best market rates (known as prime rates), but rather at a higher rate of interest because of increased risk factors.
Subprime borrowers usually have...
trustee in bankruptcy
See Bankruptcy Trustee.
[Last updated in October of 2021 by the Wex Definitions Team]
voluntary bankruptcy
Voluntary bankruptcy is a bankruptcy proceeding commenced by the debtor; bankruptcy instituted by an adjudication upon a debtor’s petition.
Involuntary bankruptcy, on the other hand, is a bankruptcy case initiated by a...
wildcard exemption
Wildcard exemption is one of a few exemptions the Federal government and state governments allow in bankruptcy that protects some of the debtor’s personal assets from creditors. In Federal bankruptcy and in states where the wildcard exemption...