The term "entity" in the context of bankruptcy refers to a variety of legal constructs recognized under the Federal Bankruptcy Code. According to 11 USCS § 101, an entity can be a person, an estate, a trust, a governmental unit, or a United States trustee. This broad definition allows for various parties to be involved in bankruptcy proceedings, each with distinct rights and responsibilities.
In legal practice, the term "entity" is used primarily in bankruptcy law to identify the parties that may file for bankruptcy or be involved in bankruptcy proceedings. This includes:
Users can manage certain aspects of bankruptcy filings themselves using legal templates available through US Legal Forms, drafted by experienced attorneys.
Here are a couple of examples of abatement:
Here are a couple of examples of how the term "entity" applies in bankruptcy:
The primary statute governing the definition of "entity" in bankruptcy is found in the Federal Bankruptcy Code, specifically:
| Term | Definition | Key Differences |
|---|---|---|
| Person | An individual human being. | Broader than an entity; only refers to individuals. |
| Trust | A legal arrangement where one party holds property for the benefit of another. | A specific type of entity recognized under bankruptcy law. |
| Governmental Unit | A department or agency of government. | Distinct from private entities, with different rights in bankruptcy. |
If you believe you may need to file for bankruptcy or are involved in a bankruptcy case as an entity, consider the following steps:
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| Attribute | Details |
|---|---|
| Typical Fees | Varies by case type and attorney fees. |
| Jurisdiction | Federal law governs bankruptcy, but state laws may apply. |
| Possible Penalties | Fraudulent claims can lead to criminal charges. |
Individuals, estates, trusts, governmental units, and United States trustees can all file for bankruptcy.