A party in interest in bankruptcy law refers to an individual or entity that has the right to participate in a bankruptcy case. This includes the debtor, the U.S. trustee or bankruptcy administrator, the case trustee, and creditors. Essentially, a party in interest is someone who may benefit from the outcome of the bankruptcy proceedings and has the legal standing to present their case or concerns to the court.
The term "party in interest" is commonly used in bankruptcy proceedings. It plays a crucial role in various legal contexts, including:
Users can manage some aspects of bankruptcy filings using legal templates available through US Legal Forms, which are prepared by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A creditor who is owed money by the debtor can file a claim in the bankruptcy case, making them a party in interest.
Example 2: A debtor who is seeking to discharge their debts in bankruptcy is also considered a party in interest because they have a direct stake in the outcome. (hypothetical example)
| Term | Definition | Key Differences |
|---|---|---|
| Creditor | A person or entity to whom money is owed. | All creditors are parties in interest, but not all parties in interest are creditors. |
| Debtor | An individual or entity that owes money. | The debtor is always a party in interest, as they are directly affected by the bankruptcy outcome. |
If you believe you are a party in interest in a bankruptcy case, consider the following steps:
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Typically, this includes the debtor, creditors, and the bankruptcy trustee.