What is a non-debtor release party?
Less common and often challenged are “nondebtor” or “third party” releases, which, as the name suggests, are releases granted to persons or entities other than the debtor by third parties, including the debtor’s creditors.
What does a third party release mean?
Third-party releases. contemplate releases of claims or causes of action held by a non- debtor against another non-debtor, while exculpation provisions. encompass releases of claims by both the debtor and non-debtor. against professionals and other bankruptcy estate fiduciaries for.
What does it mean to opt out of third party release?
Under an “opt-out” provision, a creditor or interest holder must affirmatively abstain from voting in favor of a Chapter 11 plan and provide documentation to the debtor stating that they do not consent to the release usually by checking a box on the voting ballot.
What is the difference between exculpation and release?
Exculpation clauses are, by and large, focused on postpetition conduct, not particularly controversial, and frequently seen in chapter 11 plans. On the other hand, third party releases are generally intended to protect non-debtor parties from a broad range of pre-confirmation (and often prepetition) actions.
What is a non-debtor?
Non-Debtor means any direct or indirect subsidiary or Affiliate of the Debtors that is not one of the Debtors.
What is an exculpated party?
Exculpated Party means the Debtors, the Reorganized Debtors, each of the Debtors’ and the Reorganized Debtors’ current and former Affiliates, and each of the Debtors’ and the Reorganized Debtors’ and their current and former Affiliates’ current and former directors, managers, officers, managed accounts and funds.
What is a non-debtor spouse?
A non-debtor spouse’s separate property is generally not subject to liability for the debtor spouse’s debts. Community property typically terminates upon the filing of a dissolution. However, whether the community has terminated is a question of fact.
Does a debtor owe you money?
‘Debtor’ is a term used in the business world to refer to a party that owes money to a company or individual. Learn how to manage overdue invoices with invoicing software. A debtor can be an entity, a company or a person of a legal nature that owes money to someone else – your business, for example.
What is the opposite word for debtor?
Opposite of a person or firm that owes money. creditor. lender. mortgagee.
What is a Phantom discharge?
All the debts of the non-filing spouse are also subject to the bankruptcy discharge, even though he or she does not file bankruptcy. This little known secret is sometimes called a Phantom Discharge.
Can a married person file Chapter 13 individually?
Yes, a married individual can file for Chapter 13 bankruptcy without their spouse. But if you share a household, your spouse’s income must be included in the petition. Those who live in separate households do not need to include their spouse’s income — which is often the scenario in a separation case.