perfection - When a secured creditor has taken the required steps to perfect his lien, the lien is senior to any liens that arise after
perfection. A mortgage is perfected by recording it with the county recorder; a lien in personal property is perfected by filing a
financing statement with the secretary of state. An unperfected lien is valid between the debtor and the secured creditor, but may
be behind liens created later in time, but perfected earlier than the lien in question. An unperfected lien can be avoided by the
trustee.
personal property - Assets, such as cars, stock, furniture,
etc., that is not real estate or affixed to real property.
petition - The document that initiates a bankruptcy case. The filing of the petition constitutes an order for relief and institutes the
automatic stay. Events are frequently described as "prepetition", happening before the bankruptcy petition was filed, and "post
petition", after the bankruptcy was initiated.
predatory lending - practice wher a debt service allows
you to get so much deep into debt that you are unable to find
another debt service to help you get out of debt.
preference - A transfer to a creditor in payment
of an existing debt made within certain time periods before the
commencement of
the case. Preferences may be recovered by the trustee for the benefit of all
creditors of the estate.
pre-petition - Claims or events arising before the commencement of the bankruptcy case, that is, before the filing of the bankruptcy
petition. Generally only pre petition debts may be discharged in a bankruptcy proceeding.
prime rate - The prime rate of interest is a rate of interest that serves as a benchmark for most other loans in a country. The precise definition of prime rate differs from country to country. In the United States, the prime rate is the interest rate banks charge to large corporations for short-term loans.
priority - The Bankruptcy Code establishes the order in which claims are paid from the bankruptcy estate. All claims in a higher
priority must be paid in full before claims with a lower priority receive anything. All claims with the same priority share pro rata.
Claims are paid in this order - 1) costs of administration 2) priority claims and 3) general unsecured claims. Secured claims are
paid from the proceeds of liquidating the collateral which secured the claim.
priority claims - Certain debts, such as unpaid
wages, spousal or child support, and taxes are elevated in the
payment hierarchy
under the Code. Priority claims must be paid in full before general unsecured
claims are paid. Priorities listed.
promissory note - A document signed by a borrower promising to repay a loan under agreed-upon terms.
proof of claim - The form filed with the court establishing the creditor's claim against the debtor.
property of the estate - The property that
is not exempt and belongs to the bankruptcy estate. Property
of the estate is usually
sold by the trustee and the claims of creditors paid from the proceeds.
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