If I Have An Estate, Why Am I Filing For Bankruptcy?
By Kevin Gipson, New Orleans Bankruptcy Attorney on Feb 2, 2007 in General Bankruptcy Information
A bankruptcy estate consists of all interest that a debtor has in property of any kind. The bankruptcy estate comes into existence with the filing of a Chapter 7 or Chapter 13 bankruptcy. The estate is administered by the bankruptcy court.
Of course, property includes things such as real estate, furnishings and vehicles, but also includes intangible items such as lawsuits or other causes of action possessed by the debtor as well as bequests or inheritance of property by the debtor within 180 days of filing for bankruptcy.
The good news for most consumer debtors is that the property of their bankruptcy estate is exempt from administration and they are able to keep their property, and even when the property cannot be exempted it may be of little monetary value to the trustee and will be abandoned back to the debtor.
The debtor must list all property in his schedules. A debtor who fails to list all of his property runs the following risks:
1) Having his discharge either denied or revoked; and/or,
2) Subjecting the unlisted property to claims by creditors or the trustee.
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