Party in Interest (Bankruptcy) Law and Legal Definition

In bankruptcy law, a party in interest is a person who has standing to be heard by the court in a matter to be decided in the bankruptcy case. For most matters, the debtor, U.S. trustee or bankruptcy administrator, case trustee, and creditors are parties in interest. Generally party in interest refers to a person entitled under the substantive law to enforce the right sued upon and who generally, but not necessarily, benefits from the action's final outcome.