Browse terms
The bankruptcy process
Prepetition
Prepetition means before the bankruptcy petition is filed. A prepetition debt, also written pre-petition debt, is one that arose before the case began. 1 2
Talk to a lawyerWhat does prepetition mean in a bankruptcy case?
Bankruptcy deals with a person's finances as they stood on the filing date. A creditor is someone with a claim that arose at or before the order for relief, and in a voluntary case the order for relief happens when the case starts, so the filing date is the dividing line. 1 2 3
A prepetition debt counts in full, not only the missed payments. A claim is any right to payment, whether it is already due or not yet due, disputed or undisputed, secured or unsecured. 4
The automatic stay and the estate follow the same line. The stay stops attempts to collect debts from before the bankruptcy, including collection calls and letters, and the bankruptcy estate is the debtor's interests in property as of the start of the case. 5 4
What a person did before filing is also examined. A trustee may be able to undo certain payments to creditors made within 90 days before the filing, or one year for insiders, and certain luxury purchases and cash advances made shortly before the filing are presumed to be nondischargeable. 6 7
Prepetition vs postpetition: what is the difference?
| Topic | Prepetition | Postpetition |
|---|---|---|
| Debts in a Chapter 7 case 2 | Covered by the discharge unless an exception applies 2 | Generally not covered by the discharge 2 |
| Property 4 | The debtor's interests as of the start of the case make up the estate 4 | A transfer of estate property after the case starts is a postpetition transfer 4 |
| New debt in a Chapter 13 plan 8 | Handled through the plan, which may pay creditors less than in full 8 | A debtor in a confirmed plan may not take on new debt without consulting the trustee 8 |
General rules only. Exceptions to discharge and court orders can change the result.
Common questions
I had medical treatment just before filing. Is that bill part of my case?
Is my car loan a prepetition debt if I was never late?
What about bills that come after I file?
Those are postpetition debts, and a Chapter 7 discharge generally does not cover them. 2
Sources
- 11 U.S. Code § 101(10)(A) (Cornell LII)
- 11 U.S. Code § 727(b) (Cornell LII)
- 11 U.S. Code § 301(b) (Cornell LII)
- Glossary of Legal Terms (uscourts.gov)
- 11 U.S. Code § 362(a)(3), (a)(6) (Cornell LII)
- 11 U.S. Code § 547(b) (Cornell LII)
- 11 U.S. Code § 523(a)(2)(C) (Cornell LII)
- Chapter 13 - Bankruptcy Basics (uscourts.gov)
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