Issue link: https://mbozikis.ufcontent.com/i/1422521
2 As our national bankruptcy law has evolved, it has sought to balance important, yet often conflicting principles. On the one hand, modern bankruptcy law seeks to provide an honest debtor with a fresh start or to foster rehabilitation of the debtor through provisions such as the automatic stay and discharge of the debtor. 1 On the other hand, the law seeks to promote equality of distribution among competing creditors through provisions such as preferences and fraudulent conveyances. As will be discussed in more detail later in this Guide, upon the commencement of a bankruptcy case, the person or entity subject to bankruptcy becomes known as a "debtor" and all of its interests in property become part of a separate legal entity known as a "bankruptcy estate." During a bankruptcy case, this estate is managed by an estate fiduciary. Depending on the type of bankruptcy case and the nature of the debtor, this estate fiduciary typically is either the existing management of the debtor (a so- called "debtor-in-possession") or a third party appointed for the specific purpose of managing the bankruptcy estate (a "trustee"). Although various Sections of the Bankruptcy Code refer solely to a trustee, in the context of a Chapter 11 case, such a reference generally also encompasses a debtor-in-possession as the Bankruptcy Code provides that the latter generally has the same rights, powers and duties as the former. B. Provisions Governing Bankruptcy Law The provisions governing bankruptcy law are found in (1) the Bankruptcy Code, (2) the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules," cited as "F ED. R. BANKR. P."), and (3) assorted other statutes relating to bankruptcy matters. 1 It should be noted that the 2005 Amendments, in an effort to curb certain perceived abuses, contain provisions which have in some ways made it more difficult for a debtor to obtain a fresh start or rehabilitate itself. These provisions include means-testing for eligibility of individuals in Chapter 7 cases and the imposition of strict limits on the debtor's exclusive period to file a plan in Chapter 11 cases and to assume or reject leases of non- residential real property.