We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What Are Special Revenues (Bankruptcy) and Their Legal Implications?
Definition & Meaning
Special revenues in the context of bankruptcy refer to specific types of income that a debtor generates from particular projects or services. These revenues are primarily used to fund transportation, utilities, or other services. They can include:
Income from the operation or sale of projects or systems owned by the debtor.
Special taxes imposed on certain activities or transactions.
Additional tax revenues from areas benefiting from tax-increment financing.
Other specific revenues related to the debtor's functions.
Taxes specifically designated to finance particular projects, excluding general taxes.
Table of content
Legal Use & context
Special revenues are relevant in bankruptcy proceedings, particularly in Chapter 9 municipal bankruptcies, where municipalities restructure their debts. These revenues are crucial because they can be used to pay creditors and fund ongoing operations. Legal professionals may encounter this term in various contexts, including:
Municipal finance
Debt restructuring
Tax law
Users can manage certain legal processes related to special revenues with the help of legal templates available through US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of special revenues:
A city operates a public transportation system and generates revenue from ticket sales and service fees. This income qualifies as special revenue.
A utility company collects fees from customers for water services, which are designated to fund infrastructure improvements (hypothetical example).
Relevant laws & statutes
Special revenues are primarily defined under federal bankruptcy law, specifically in Title 11 of the United States Code, Section 902. This section outlines the nature and types of revenues that qualify as special revenues in bankruptcy cases.
Comparison with related terms
Term
Definition
Key Differences
General Revenues
Income from broad sources, such as property taxes or sales taxes.
General revenues are not tied to specific projects and can be used for general purposes.
Tax-Increment Financing
A financing method that uses future tax benefits to pay for current improvements.
Tax-increment financing is a specific type of special revenue focused on redevelopment areas.
Common misunderstandings
What to do if this term applies to you
If you believe special revenues apply to your situation, consider the following steps:
Review your financial documents to identify sources of special revenues.
Consult with a legal professional to understand how these revenues can impact your bankruptcy case.
Explore US Legal Forms for templates that can help you manage related legal processes.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.