Understanding the Legal Definition of Person (Bankruptcy)

Definition & Meaning

In the context of bankruptcy law, the term "person" refers to various entities that can be involved in bankruptcy proceedings. According to the Federal Bankruptcy Code, this includes individuals, partnerships, and corporations. However, it explicitly excludes governmental units, with some exceptions. These exceptions allow certain governmental entities to be considered "persons" in specific situations, such as when they acquire assets from individuals or entities in bankruptcy.

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Real-world examples

Here are a couple of examples of abatement:

For instance, if an individual files for bankruptcy, they are considered a "person" under the law. Similarly, if a corporation faces financial difficulties and seeks bankruptcy protection, it too qualifies as a "person." (hypothetical example)

Comparison with related terms

Term Definition
Entity A broader term that includes any legal structure (individuals, corporations, etc.) recognized by law.
Debtor A specific type of person or entity that owes money and may file for bankruptcy.

What to do if this term applies to you

If you are considering bankruptcy or are involved in a bankruptcy case, it is essential to understand your rights and responsibilities as a "person" under the law. You can explore US Legal Forms for ready-to-use legal templates that can assist you in filing for bankruptcy. If your situation is complex, seeking advice from a legal professional may be beneficial.

Quick facts

Attribute Details
Who qualifies as a person? Individuals, partnerships, corporations (excluding some governmental units).
Key statute 11 USCS § 101
Common legal context Bankruptcy filings and proceedings.

Key takeaways

Frequently asked questions

Yes, corporations are considered "persons" under bankruptcy law and can file for bankruptcy protection.