Bankruptcy Distribution
/ˈbæŋkrʌptsi dɪstrɪˈbjuːʃən/
Definitions
- (n.) The allocation of a bankrupt debtor’s assets among creditors according to legal priorities.
The bankruptcy distribution was carried out in compliance with the court’s order prioritizing secured creditors.
- (n.) The process by which funds or property are distributed during a bankruptcy proceeding.
Creditors received their bankruptcy distribution after the trustee liquidated the debtor’s estate.
Forms
- bankruptcy distribution
- bankruptcy distributions
Related terms
See also
Commentary
Use precise language to clarify that distributions occur under court supervision and follow statutory priority rules.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.