Usually after the chapter 11 case is filed, the debtor is required to file a disclosure statement and a plan of reorganization. The purpose of the chapter 11 disclosure statement is to disclose all of the assets, liabilites and income and expenses.

These documents are circulated to all of the creditors. Creditors have the right to accept the plan or they can reject the plan. In the event that the creditors reject the plan, in many instances a hearing can be scheduled before the bankruptcy judge to decided the issues.

In a chapter 11 case, the typical objective is to pay the junior creditors a percentage on the dollar of what is actually owed in order te remain in business.

A typical requirement for the success of a chapter 11 case is that the creditors should receive more of a distribution than if the case were filed under chapter 7 of the bankruptcy code.

The typical chapter 11 plan provides for different classes of creditors. Generally prioity creditors are paid in full. These types of creditors include government obigations such as federal and state taxes.

Secured crediors are creditors in which the debt is secured by a mortgage or a lien.

Unsecured creditors are creditors that are not attached to any security.

United States Postal Service - Federal office providing mail delivery to individuals and businesses within the United States

Unilateral contract - Agreement by one party only.

United States Court of Claims - Court which hears cases against the U.S. Government

United States Court of Military Appeals - Court which hears appeals from court marshal decisions

United States Court of Customs & Patent Appeals - Court that hears appeals from all U.S. customs courts

Taxable income - Gross income of businesses or adjusted gross income of individuals less deductions and exemptions

Tax Court of the United States - Judicial body which hears federal tax cases.

Temporary relief - Action by a court granting one of the parties an order to protect its interest pending further action by the court

Temporary restraining order - An emergency remedy issued by a court only in exceptional circumstances, usually when immediate or irreparable damages or loss might result before the opposition could take action

Testator - Person making a will

Testimony - Evidence by a witness under oath. It does not include evidence from documents and other physical evidence

Third party complaint - A petition filed by a defendant against a third party.

Title - Legal ownership of property.

Tort - Private or civil injury or wrong.

Tender of performance -Offer to do what is required under a contract or under the law

Testamentary capacity - Legal ability to will property.

Testamentary trust - Trust set up under a will

Trademark - Word, symbol, or devise used by a manufacturer to distinguish his goods from those sold by others

Transcript - Written, word-for-word record of proceedings.

Transmittal form - Form required in certain courts for transmitting documents for filing

Treatise - A formal and systematic book or writing containing a narrative statement on a field of law

Trial - Judicial examination of issues between parties to an action

Trial brief - Written document prepared for and used by an attorney at trial. It contains the issues to be tried, synopsis of evidence to be presented and case and statutory authority to substantiate the attorney's position at trial

Trust - Legal device used to manage real or personal property, established by one person grantor or settlor for the benefit of another

Trust agreement or declaration - The legal document that sets up a living trust. Testamentary trusts are set up in a will

Trustee - Person or institution that manages the property put in trust

Truth in lending - Statutes which provide that precise and meaningful cost of credit information be provided to the credit customer

United States Court of International Trade - Court which hears cases concerning federal tariff laws

Union - Organization of workers formed for the purpose of collective bargaining any pretrial civil matters referred by the district court. If all parties agree criminal misdemeanor and civil trials can be heard by this court

United States Marshal's Service - Agency which serves civil and criminal process in federal courts

United States Bankruptcy Court - Judicial body which hears matters pertaining to bankruptcy and reorganization

United States Court of Appeals - Courts which hear appeals from federal district courts, bankruptcy courts, and tax courts

United States District Courts - Courts which try both criminal and civil actions and admiralty cases

United States Magistrate Judge - Courts given authority by 28 U.S.C. s 636. This court hears all preliminary criminal matters, but does not conduct felony trials. To view in Spanish click on link: Spanish