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Texas Bankruptcy - Terms & Definitions

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Gap Claim
a claim arising during the period of time between the filing of an involuntary petition and the entry of an order for relief.
Gap Creditor
a person who extends credit or financing to the debtor during the period between two legally significant events, such as between the attachment and perfection of a security interest or between the filing of an involuntary petition and the order for relief.
Garnishment
A court-ordered method of debt collection in which a portion of a person's salary is paid directly to a creditor.
Garnishment Lien
a judicial lien that arises in property upon which garnishment has been levied.
General Unsecured Claim
Creditor's claim for payment for which the creditor holds no security (or collateral). If the available funds in the estate extend to payment of unsecured claims, the claims are paid in proportion to the size of the claim relative to the total of claims in the class of unsecured claims.
Going Concern Value
the value of a business based on its sale as a continuing operation, rather than on the proceeds that would be realized upon the liquida- tion of its assets.
Good Faith
subjective honesty and (in the bankruptcy context) compliance with the spirit of the Code.
Good Faith Purchaser
this term is sometimes used synonymously with bon fide purchaser. However, it is also sometimes used to denote a purchaser who acts honestly, but does not satisfy all of the other elements necessary to qualify as a bona fide purchaser. See bona fide purchaser.
Grand Jury
A body of 16-23 citizens who listen to evidence of criminal allegations, which is presented by the prosecutors, and determine whether there is probable cause to believe an individual committed an offense. See also indictment and U.S. attorney.

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