Disclosure Statement Law and Legal Definition
A disclosure statement is a statement that discloses information in plain written language, that is easy to understand. The information contained in the disclosure statement may be relevant or important. Disclosure statements are used in a wide range of contexts. In the context of Bankruptcy it is a document in writing prepared by a chapter 11 debtor. It provides adequate information about Chapter 11 plan of reorganization to creditors. It also refers to a document that contains the rules of Individual Retirement Account (IRA) in plain, non technical language. A document explaining specific terms and conditions of a loan, rights and the responsibilities of a borrower, interest rate of a loan, amount borrowed, insurance, prepayment is also called as a disclosure statement. They are issued before arrangements are finalized for the reading of the people to give people an opportunity to revoke or cancel arrangements on finding something important in the disclosure statement.