{"id":9248,"date":"2017-11-23T21:55:47","date_gmt":"2017-11-23T21:55:47","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=9248"},"modified":"2017-11-23T22:50:59","modified_gmt":"2017-11-23T22:50:59","slug":"types-of-petitions-pertaining-to-bankruptcy-court","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=9248","title":{"rendered":"Types of Petitions pertaining to Bankruptcy Court:"},"content":{"rendered":"

petition in bankruptcy<\/span> <\/strong>– (18c) A formal written request, presented to a bankruptcy court, seeking protection for an insolvent debtor.\u00a0 *\u00a0 The debtor (in a voluntary bankruptcy) or the debtor\u2019s creditors (in an involuntary bank<\/strong><\/span>ruptcy) can file such a petition to initiate a bankruptcy proceeding.\u00a0<\/span><\/strong>[1]<\/span><\/p>\n

1. A document filed in a court of bankruptcy, or with a clerk thereof initiating a proceeding under the Bankruptcy Act.<\/strong>\u00a0 Bankr Act \u00a7 1(24)<\/strong><\/span>; 11 USC \u00a7 1(24).\u00a0\u00a0A pleading in effect. Royal Indem. Co. v American Bond & Mortgage<\/em> Co. 289 US 165, 77 L Ed 1100, 53 S Ct 551<\/span><\/strong>. [2]<\/span><\/p>\n

involuntary petition:<\/span>
\n<\/span><\/strong>(1868)<\/span><\/p>\n

1.<\/strong>\u00a0A petition filed in a bankruptcy court by a creditor seeking to declare a debtor bankrupt.\u00a0 *\u00a0 This petition may e filed only under\u00a0<\/strong><\/span>Chapter 7 or Chapter 11 of the Bankruptcy Code<\/a>.<\/strong> \u2014 aka creditor\u2019s petition<\/span><\/strong><\/em>.<\/span><\/p>\n

voluntary petition:<\/span>
\n<\/span><\/strong>(1842)<\/span><\/p>\n

1.<\/strong>\u00a0A petition filed with a bankruptcy court by a debtor seeking protection from creditors.<\/strong> \u2014 aka bankruptcy petition<\/strong><\/em><\/span>; debtor\u2019s petition<\/strong><\/em><\/span>. [1]<\/span><\/p>\n

petitioning creditor<\/span>:<\/span><\/strong><\/p>\n

1. A creditor who institutes proceedings against his debtor in a court of bankruptcy.<\/strong><\/span><\/p>\n

petition in insolvency<\/span>:<\/span><\/strong><\/p>\n

1. A petition, voluntary or involuntary, for the adjudication of a person as an insolvent, to the purpose that insolvency proceedings may ensue, wherein such assets as the insolvent\u00a0<\/span><\/strong>has may be distributed according to law.<\/strong>\u00a0 29 Am 1 Rev ed Insolv \u00a7 14<\/strong><\/span>. [2]<\/span><\/p>\n

insolvency<\/span>:<\/span><\/strong>
\nn.<\/em> (17c)<\/span><\/p>\n

l. The condition of being unable to pay debts as they fall due or in the usual course of business. <\/span><\/strong><\/p>\n

2. The inability to pay debts as they mature.<\/strong>\u00a0 \u2014 aka failure to meet obligations<\/strong><\/em><\/span>; falling circumstances<\/strong><\/em><\/span>.\u00a0 See BANKRUPTCY (1).\u00a0 Cf.\u00a0 SOLVENCY.<\/span><\/p>\n

balance-sheet insolvency<\/span>:<\/strong><\/span>
\n(1966)<\/span><\/p>\n

1. Insolvency created when the debtor\u2019s liabilities exceed its assets.\u00a0 *\u00a0 Under some state laws, balance-sheet insolvency prevents a corporation from making a distribution to its shar<\/strong>eholders. <\/strong>\u2014 aka balance-sheet test<\/strong><\/em><\/span>.<\/span><\/span><\/p>\n

\n

equity insolvency<\/span>:<\/span><\/strong>
\n(1918)<\/span><\/p>\n

1. Insolvency created when the debtor cannot meet its obligations as they fall due.\u00a0 *\u00a0 Under most state laws, equity insolvency prevents a\u00a0<\/span>corporation from making a distribution to its shareholders.<\/span><\/strong><\/p>\n

notorious insolvency<\/span>:<\/strong><\/span>
\n(1802)<\/span><\/p>\n

1.<\/strong> Scots law<\/em>. A bankruptcy; the stage of insolvency. in which the debtor has publicly acknowledged insolvency under the statute.\u00a0 *\u00a0 This stage is usually followed by sequestration, which is notorious insolvency coupled with the appointment of a trustee for creditors. <\/strong>\u2014 aka public insolvency<\/strong><\/em><\/span>; notour bankruptcy<\/strong><\/em><\/span>.<\/span><\/p>\n

\u00a0 \u00a0 \u00a0Excerpt from\u00a0George Watson’s\u00a0Bell’s Dictionary and Digest of the Law of Scotland<\/em><\/a>\u00a0(3d ed. 1882):<\/strong><\/span><\/p>\n

\u00a0 \u00a0 \u00a0\u201cBankruptcy, according to the law of Scotland, is public or notorious insolvency.\u00a0 When a debtor in an obligation cannot fulfill his obligation as undertaken . . . a position which constitutes insolvency \u2014 and makes public acknowledgment, in manner determined by statute, of his inabil<\/span><\/span>ity, the status or condition of bankruptcy has arisen, and the insolvent debtor is, in the language of the statutes, a \u2018notour\u2019 bankrupt . . . . The law of notour bankruptcy is\u00a0<\/span>mainly statutory.\u00a0 Legislation has fixed the circumstances which constitute the status, and determined all the most\u00a0<\/span><\/span><\/strong>important results.<\/span>\u201d<\/strong> [3]<\/span><\/p>\n

> public insolvency. See notorious insolvency.<\/span><\/p>\n

insolvency law<\/span>:<\/strong><\/span>
\n(1833)<\/span><\/p>\n

1. A statute that provides relief to a debtor who lacks the means to pay creditors.\u00a0 *\u00a0 The term is sometimes used interchangeably with bankruptcy law because legislative drafting may not produce a bright-line\u00a0<\/span><\/strong>distinction.<\/strong>\u2014 aka insolvent law<\/strong><\/em><\/span>.\u00a0 CL RUPTCY LAW (2).<\/span><\/p>\n

insolvency proceeding<\/span>:<\/span><\/strong>
\n(1846)<\/span><\/p>\n

1.<\/strong> Archaic<\/em>. A bankruptcy proceeding to liquidate or rehabilitate an estate.<\/strong> Cf. BANK<\/span>RUPTCY LAW (2).<\/span><\/p>\n

insolvent<\/span>:<\/strong><\/span>
\nadj<\/em>. (16c)<\/span><\/p>\n

1. (Of a debtor) having liabilities that exceed the value of assets; having stopped paying deb: in the ordinary course of business or being unable to pay them as they fall due.<\/strong> \u2014\u00a0<\/span>insolvent,\u00a0n.<\/em>
\n<\/span><\/p>\n

insolvent estate<\/span>:<\/span><\/strong><\/p>\n

1. See ESTATE (3). [1]<\/span><\/p>\n

incrilicncy. The insnlllcicncy of the entire propert} and assets of an individual to pay his debts 29 An J Rev ed Insolv \u00a7 2. In a prttLlICtti Lornmerua. sense. the inability of a person to pay his debts as may become due in the ordinary course of hrs bust116559 such being the sense of the term as applied to traders and merchants, permitting a determination of insolvency, although the debts of the person nowally may be paid at some future time on a settlement and winding tip of his affairs (29 Am .1 Rev ed lnsolv \u00a72) but apparently giving to a debtor the advantage of the use of his credit to raise money forthe payment of his debts. United States v Anderson Co. (CA7 Ind) 119 PM 343.<\/span><\/p>\n

By definition in the Bankruptcy Act, controlling for the purpose of determining the commission of an act 0 bankruptcy :—-the status of a person whenever the aggregate of his property exclusive of any property which he may have conveyed, transferred, concealed, removed, or permitted to be concealed or removed, with intent to defraud, hinder, or delay his creditors, shall not at the fair valuation be sufficient in amount to pay his debts. Bankr Act \u00a7 1(19); 11 USC \u00a7 109); 9 Am J2d Bankr \u00a7 160. For the purpose of determining whether a transfer is fraudulent under the Bankruptcy Acts-the status of a person when the present fair salable value of his property is less than the amount required to pay his debts. Bankruptcy Act \u00a7 67 (d) (1) (d); 11 USC \u00a7107 (d) (1) (d). (This dennition is controlling as against the preceding definition, also from the Bankruptcy Act, inasmuch as Congress intended less stringent requirement in proof of insolvency in fraudulent transfer cases than in other phases of baglpuptcy. Holohan v Lewis (DC Fla) 182 F Supp 47 .<\/span><\/p>\n

In reference to the qualification of a person to administer the estate of a decedent, not the mere not owning of property, but the owing of debts in excess of the value of property. 31 Am J2d Ex & Ad \u00a768.<\/span><\/p>\n

A debtor is \u201cinsolvent\u201d within the meaning of a statute giving priority to debts due the United States from an insolvent debtor, if, not having sufficient property to pay all his debts, he either makes a voluntary assignment of his property for the benefit of his creditors or commits an act of bankruptcy. United States v Gotwals (CAlO Okla) 156 F2d 692, 169 ALR 619. No lien is created by the statute; the priority established can never attach while the debtor continues the owner and in the possession of the property, although he may be unable to pay all his debts; no evidence can be received of the insolvency of the debtor until he has been divested of his property in one of the modes stated in the statute. 29 Am J Rev ed Insolv \u00a7 68.<\/span><\/p>\n

See acts of insolvency; assignee in insolvency; hopelessly insolvent; open insolvency.<\/span><\/p>\n

insolvency laws. See insolvency statutes.<\/span><\/p>\n

insolvency of bank. An expression of dual meaning: -~(l) the insuliiciency of assets to pay liabilities within a reasonable time; (2) an insuliiciency of assets to pay liabilities as they become due in the ordinary course of business. Anno: 85 ALR 812. _ See hopelessly insolvent; receiving deposits while Insolvent.<\/span><\/p>\n

iItsolvcney of building and loan association. Inability to satisfy the demands of members. Anno: 98 ALR<\/span><\/p>\n

111. 1\\ Am Jltl 11 h 1 Anne I 101 In shthty to pay h u k to tilt mlwrs the anmnnt of their umtrthu tmus dollar for dollar anmmn v Home Way Jr<\/span><\/p>\n

1. Assn 182 Wash SW. 47 P211 1141, 100 AI R 570<\/span><\/p>\n

insolvency of corporation. An lmuflltltm y of 5 ts to pay down In a tame unnnmrclal sense. an tnahtl lty to pay debts as they become due in the ordinary course of business 19 Am 12d ( mp Q 150\u2018)<\/span><\/p>\n

See also insolvency.<\/span><\/p>\n

insolvency of Insurance company. A (it ilrtttm of It sets to the extent that they are lnsull clrnt for the payment of the just debts and obligations of the company. 29 Am J Rev ed Inn 9 116.<\/span><\/p>\n

An insurance company is not insolvent when the value of its pro werty is greater than the amount of its liabilities an it is able to pay its debts when they mature, althou h the excess of the value of its property above its iabilities may be less than the par value of its stock. Shearer v Farmers\u2019 L. Ins. Co. (CA8 M0) 262 F 861.<\/span><\/p>\n

Actuarial solvency of a mutual benefit company requires that the funds of the company on hand and the present value of future payments to be made by the members shall be equal to the accrued obliga<\/span><\/p>\n

tions and the present value of the insurance in force. Jenkins v Talbot, 338 Ill 441, 170 NE 735, 80 ALR<\/span><\/p>\n

638, app dismd 283 US 782, 75 L Ed 1412, 51 S Ct 342.<\/span><\/p>\n

insolvency of lessee. In reference to re-entry by the lesson-the failure of a lessee to meet obligations as they mature, or such financial condition as throws the lessee\u2019s relations into confusion, delays payment of the rent, impounds his property for an indefinite time, and in general makes it important for the lessor to be free to re-enter. Re Wil-Low Cafeterias Inc. (CA2 NY) 95 F2d 306, 115 ALR 1184, cert den 304 US 567, 82 L Ed 1533, 58 S Ct 950.<\/span><\/p>\n

insolvency of partnership. Insumciency of the aggregate joint property to pay the firm liabilities, without reference to the solvency or insolvency of the individual partners. 40 Am Jlst Partn \u00a7 256.<\/span><\/p>\n

In determining insolvency of a partnership for the purposes of ascertaining whether a transfer is fraudulent under the Bankruptcy Act, there shall be added to the partnership property the present fair salable value of the separate property of each general partner in excess of the amount required to pay his separate debts, and also the amount realizable on any unpaid subscription to the partnership of each limited partner. Bankr Act \u00a7 67 (d) ( 1) (d);<\/span><\/p>\n

11 USC \u00a7 107 (d) (l) (d).<\/span><\/p>\n

insolvency of savings and loan association. See insolvency of building and loan association.<\/span><\/p>\n

insolvency proceedings. See proceedings in insolvency.<\/span><\/p>\n

insolvency statutes. State statutes, comparable to the National Bankruptcy Act, which provide a proceeding by or against a debtor to have him declared insolvent and his preperty brought into court for disposition among his creditors in accordance with law. Vanuxem v Hazelhursts, 4 NJ L 192.<\/span><\/p>\n

insolvent. Characterizing a person who either has ceased to pay his debts in the ordinary course of business, cannot pay his debts as they become due, or is insolvent within the meaning of the Federal Bankruptcy Act. UCC \u00a7 1-201(24). One in a condttion of insolvency. Sec insolvency.<\/span><\/p>\n

insolvent bank. See insolvency of bank.<\/span><\/p>\n

insolvent building and loan association. See insolvency of building and loan association.<\/span><\/p>\n

insolvent corporation. See insolvency of corporation.<\/span><\/p>\n

insolvent estate. The estate of a decedent which is to be administered according to a Spec1al statutory method because of the fact of insolvency. 31 Am<\/span><\/p>\n

12d Ex & Ad \u00a7 312.<\/span><\/p>\n

insolvent law. See insolvency statutes.<\/span><\/p>\n

insolvent partnership. See insolvency of partnership. [2]<\/span><\/p>\n<\/div>\n

References:<\/span><\/span><\/strong><\/p>\n

Disclaimer:<\/span><\/span><\/strong> All material throughout this website is pertinent to people everywhere, and is being utilized in accordance with Fair Use<\/a>.<\/span><\/strong><\/p>\n

\n

[1]:\u00a0<\/span><\/strong>Black’s Law Dictionary <\/a><\/span><\/strong>Deluxe Tenth Edition<\/b><\/span><\/a><\/em> by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4<\/span><\/strong><\/p>\n

[2]:\u00a0Ballantine\u2019s Law Dictionary\u00a0with Pronunciations
\n<\/em>Third Edition<\/a>\u00a0by James A. Ballantine\u00a0(James Arthur 1871-1949).\u00a0\u00a0<\/em>Edited by William S. Anderson.\u00a0\u00a0\u00a9 1969 by THE LAWYER\u2019S CO-OPERATIVE PUBLISHING COMPANY.\u00a0 Library of Congress Catalog Card No. 68-30931<\/span><\/strong><\/p>\n

[3]:\u00a0George Watson, Bell’s Dictionary and Digest of the Law of Scotland<\/em><\/a> 78 (3d ed. 1882).<\/span><\/strong><\/p>\n

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