Legal Question in Bankruptcy in New York

Re: Definition of terms used in Schedule Forms

creditor -- someone to whom the debtor owes a debt, whether it's agreed or disputed, whether its in contract or otherwise, whether its currently due or might become due...etc... very long Code language. Basically, anyone the debtor thinks he might owe money to.

claim -- what the debtor owes or might owe to the creditor

unsecured -- a claim for which there isn't any security, like the mortgage on a home, or a car loan. Sometimes when lenders lend you money, they take a lien on some of your property, which gives them a preference in grabbing and selling that asset if you don't re-pay them. That's what it means to be "secured." "Unsecured" means not having that kind of lien or security interest. In the usual case, somebody who simply sells goods or services to another person, is an unsecured creditor.

priority -- some claims are afforded "priority" under the bankruptcy code. Typical such claims are taxes and unpaid wages.

nonpriority -- all other claims which aren't within the priorty category.

executory -- a contract which still has performance owed, or which hasn't yet been fully completed by the parties. Classic case is a lease of real estate, if you have a 10 year lease, and the debtor files for bankruptcy during the second year of the lease, it's called an executory contract, because there is much performance remaining under the contract.

unexpired lease -- an executory lease.