A 'Debtor in Possession' (DIP) is a status granted to a debtor who retains control of property and continues to operate its business while undergoing a bankruptcy proceeding, typically under Chapter 11 in the U.S. Bankruptcy Code.
A Declaration of Homestead is a legal document that establishes a homeowner's protection under homestead laws, often providing creditor protection for the primary residence.
Discharge in Bankruptcy refers to the release of a bankrupt party from the obligation to repay debts that were, or might have been, proved in a bankruptcy proceeding.
Liquidation involves the process of closing a business, selling its assets, and distributing the proceeds to creditors and shareholders. It can also refer to retiring debts by paying them off.
In real estate, 'Priority' refers to the order in which creditors will be repaid in the event of a foreclosure. This can significantly impact which stakeholders are paid first and who might not receive any repayment if funds are exhausted.
Regulation Z, also known as the Truth in Lending Act (TILA), requires creditors to provide full disclosure of the terms of a loan, including the interest rate as an Annual Percentage Rate (APR). This regulation is compulsory for anyone who arranges credit for more than five sales of residential real estate in a year.
