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BANKRUPTCY: Disinterested Person

The meaning of the words "disinterested person" may seem somewhat clear in many contexts, but there is a special definition under the U.S. Bankruptcy Code, which defines this term as a person that:

(A) is not a creditor, an equity security holder, or an insider

(B) is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor; and

(C) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason. This clarification is found in 11 U.S.C. Sec. 101(14).

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