CMS Pub. 100-06, ch. 3, § 140.2

The definitions below are generally accepted. Jurisdictional bankruptcy rules may impact the

interpretation of these terms. CMS Counsel’s guidance takes precedence over definitions listed below.

Adversary Proceeding is litigation in bankruptcy court to recover money or property; determine the

validity, priority or ranking of an interest in property; get approval for selling an estate's property

interest; revoke a discharge or an order of confirmation; and obtain declaratory judgments related to

matters of the bankruptcy estate. Litigation against the CMS to turn over recouped monies is an

example of an adversary proceeding.

Affirmative Recovery Actions is the debtor’s assumption of its executory contract (its provider

agreement).

Automatic Stay is an injunction that automatically springs into effect concurrently with the filing of the

bankruptcy petition. The automatic stay protects the assets of the estate from lawsuits, foreclosures,

garnishments, and any other collection activities that are not specifically exempt from the stay by statute

or specifically approved by the bankruptcy court. The automatic stay applies to Medicare overpayment

letters that demand repayment, assess interest or otherwise attempt to gain possession of property of the

bankruptcy estate.

Bankruptcy Trustee is a private individual or corporation appointed to represent the interests of the

bankruptcy estate and the debtor's creditors.

Bar Date is the deadline for filing a proof of claim. In general, the bar date for government agencies

such as the CMS is 180 days after the date of the order for relief (usually, the date the provider files for

bankruptcy). In some bankruptcies, however, the court may set a different date.

Claim is the creditor's right to payment or equitable relief creating a right to payment from a debtor or

the debtor's property whether that right is reduced to judgment, liquidated, unliquidated, fixed,

contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured. The date

a claim arises determines whether it is pre-petition or

post-petition. In Medicare, the date of service is the date of the claim.

Confirmation is bankruptcy court approval of a plan of reorganization.

Contingent Claim is a claim that may be owed by the debtor under certain circumstances, for example,

where the debtor is a co-signer on another person's loan and that person has not yet defaulted but may

fail to pay.

Creditor is a person or a business to which the debtor owes money, or which claims to be owed money

by the debtor.

Debtor is a person or business who has filed a bankruptcy petition.

Discharge is a release of a debtor from liability for certain dischargeable debts. It prevents the

creditors that are owed those debts from taking any action to collect those debts from the debtor or the

debtor's property. Prohibited actions include making telephone calls, sending letters, and having

contact that is intended to induce the debtor to pay the debt.

Dischargeable Debt is a debt for which the Bankruptcy Code allows the debtor's personal liability to be

eliminated.

Dismiss does not release a debtor from liability on any debts. It does not prevent creditors that are

owed those debts from taking appropriate action to collect those debts from the debtor or the debtor's

property. When a case is dismissed, it is as if the debtor never filed. Therefore, you may proceed with

actions that include making telephone calls, sending demand letters, and having contact that is intended

to induce the debtor to pay the debt.

Estate is the name for the Debtor's property interests overseen by the bankruptcy court. Filing a petition

in bankruptcy creates an estate consisting of all legal and equitable interests the Debtor has. In general,

a legal interest is direct ownership of property. In contrast, an equitable interest typically is indirect

and may require court involvement to obtain control or exercise the property rights.

Executory Contract is a contract under which the parties to an agreement have duties remaining to be

performed. A Medicare Part A provider agreement is treated as an executory contract.

Exemption is property that the Bankruptcy Code or applicable State law permits a debtor to keep from

creditors.

Fraudulent Transfer is a known and fraudulent transfer or concealment of property by the debtor with

the intent to defeat the provisions of the Bankruptcy Code.

Lien is a recorded claim upon specific property to secure payment of a specific debt or performance of

an obligation. Medicare does not have a lien on overpayments.

Liquidation is the conversion of the debtor's property into cash with the proceeds to be used for the

benefit of creditors.

Liquidated Claim is a creditor's claim for a fixed amount of money.

Motion to Lift the Automatic Stay is a request by a creditor to allow the creditor to take an action

against a debtor or the debtor's property that would otherwise be prohibited by the automatic stay.

Non-Dischargeable Debt is a debt that cannot be eliminated in bankruptcy. Overpayments resulting

from fraud are non-dischargeable. A complaint to determine discharge ability must be filed in the

bankruptcy court. See Adversarial Proceeding, above.

Plan of Reorganization is a debtor's detailed description of how the debtor proposes to pay creditors'

claims over a fixed period of time.

Priority is the Bankruptcy Code's statutory ranking of unsecured claims. It determines the order in

which unsecured claims will be paid if there is not enough money to pay all unsecured claims in full.

Priority Claim is an unsecured claim that is entitled to be paid ahead of other unsecured claims that are

not entitled to priority status. Administrative expenses for preserving the estate (e.g., certain accounting

fees or post-petition Medicare overpayments) are considered priority claims.

Secured Debt is a debt backed by a mortgage, pledged collateral, or another lien. The creditor that has

a secured debt has the right to pursue specific pledged property upon default. See lien above.

Schedule is a list submitted by the debtor along with the petition (or shortly thereafter) showing the

debtor's assets, liabilities, and other financial information. (There are official forms a debtor must use.)

Settlement Agreement is an agreement settling a dispute between two or more parties.

Stipulation is an agreement between parties respecting the conduct of legal proceedings approved by

the Bankruptcy Court. With appropriate approval, Medicare may enter into a stipulation agreement to

facilitate a change of ownership or to resolve an overpayment earlier than could be expected by

litigation.

United States Trustee is an officer of the Department of Justice responsible for supervising the

administration of bankruptcy cases, estates, and trustees, monitoring plans and disclosure statements,

monitoring creditors' committees, monitoring fee applications, and performing other statutory duties.

Unsecured debt is one that is not backed by property or collateral. Medicare claims are generally

unsecured.