§3301 Definitions

Summary

Defines key words used in this part of the law. Affiliate — a person or company that owns or controls 20 percent or more of the debtor’s voting stock, or a company whose business or assets the debtor controls or that controls the debtor; it does not include someone who only holds stock as a trustee without sole voting power or who holds it only to secure a debt and has not voted. Asset — property that belongs to the debtor, but not property already covered by a valid lien, property usually exempt under nonbankruptcy law, or certain whole‑ownership real estate interests not subject to process by the United States when the claim is against only one owner. Claim — any right to payment, whether decided or undecided, fixed or not, disputed or undisputed, secured or unsecured. Creditor — anyone who has a claim. Insider — people closely connected to the debtor, described differently if the debtor is an individual, a corporation, or a partnership; this includes relatives, partners, directors, officers, people in control, affiliates (and their insiders), and a managing agent. Lien — a legal charge or interest in property that secures payment of a debt, including security interests, court liens, common‑law liens, and statutory liens. Relative — someone related by blood or adoption within the third degree under common law, a spouse, or someone related to the spouse within the third degree. Transfer — any way of giving up or moving an asset or an interest in it, such as payment, release, lease, or creating a lien. Valid lien — a lien that is effective against a person who later gets a judicial lien.