Browse terms
Courts and procedure
Entity
A broad term in the Bankruptcy Code that includes a person, an estate, a trust, a governmental unit and the United States trustee. 1
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The word matters because it is wider than person. In the Code, person includes an individual, a partnership and a corporation but, as a rule, not a governmental unit. Entity takes in governmental units too. 1
Governmental unit covers the United States, states, municipalities, foreign states and their departments and agencies. 1
That is why a government body can be a creditor. The Code defines a creditor as an entity with a claim against the debtor that arose at or before the start of the case. 2
The word also appears in everyday rules. For example, any entity that wants to be paid from the bankruptcy estate for services must file an application with the court. 3
Common questions
Is a state agency an entity?
Yes. A governmental unit is an entity, and governmental unit covers states and their departments and agencies. 1
Is an individual an entity?
Yes. An individual is a person, and a person is an entity. 1
Is a trust an entity?
Yes. The definition names estates and trusts along with persons and governmental units. 1
Sources
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