

San Antonio Bankruptcy - Terms & Definitions


inability to convert assets into cash. See insolvency
Impaired (class of claims or interests)
In a Chapter 11 case, a class is impaired unless the rights of each member are unaltered (except for the cure of any default and deacceleration of the debt) or the claim or interest is paid out in cash. (§1124)
Impaired Date
a claim not paid according to its terms on the effective date of a Chapter 11 plan. For example, unsecured creditors who are to be paid over an extended period of time are impaired. An impaired class of claims is entitled to vote to accept or reject a Chapter 11 reorganization plan.
Improvement In Position Test
one of the requirements for the avoidance of a transfer under §547 is that the transfer enabled the creditor to improve on the position that it would have occupied without the transfer. Improvement in position occurs where the transfer has enabled the creditor to receive more on its claim than it would have been paid in a hypothetical Chapter 7 distribution in the absence of the transfer.
In Camera
In custodia legis
(Latin: "In the custody of the law".) The retention of property for safekeeping by the sheriff, a receiver, or some other person with legal authority.
Inculpatory Evidence
Evidence indicating that a defendant did commit the crime.
a natural person, as distinct from a corporate entity.
Indubitable Equivalent
a broad standard for measuring adequate protection under §361(3). The court must be satisfied that a proposed method of protecting an interest in property will undoubtedly provide the claimant with value equal to the value of the interest. Indubitable equivalence is also used as a standard for determining whether a secured claim has been treated fairly and equitably in a cramdown confirmation. (§1129(b)(2)(A)(iii))
In forma pauperis
Insider (of corporate debtor)
Insider (of individual debtor)
Insider (of the Debtor)
generally, an entity in control of a debtor or a debtor's relatives. The definition of an insider will vary depending upon the debtor's identity as an individual, partnership, or corporation. Section 101(30) of the Bankruptcy Code defines insider.
inability to pay debts, determined by one of two tests: inability to pay debts as they fall due (called the "equity test") or an excess of liabilities over assets (called the "bankruptcy" or "balance sheet" test). (§101(32))
an entity is generally insolvent when its liabilities exceed its assets. Section 101(31) of the Bankruptcy Code defines insolvency.
Intellectual Property
patents, copyrights, and trademarks.
Interim Trustee
the trustee appointed by the United States Trustee to administer a bankruptcy estate prior to the meeting of creditors called for by Section 341(a) of the Bankruptcy Code. The interim trustee will become the permanent trustee unless the creditors elect a different trustee at the meeting of creditors.
any form of personal property that a debtor uses to produce revenue.
Involuntary Bankruptcy
a bankruptcy proceeding initiated by one or more creditors (or general partners of a partnership) by filing a petition seeking the entry of an order for relief, a judgment that the debtor is bankrupt. Also known as an involuntary petition. Section 303 of the Bankruptcy Code governs involuntary petitions.
Ipso Facto Clause
a clause in a contract defining insolvency or a bankruptcy filing as an act of default. These clauses generally are not enforceable in bankruptcy proceedings.



