If I Have An Estate, Why Am I Filing For Bankruptcy?

02 Feb If I Have An Estate, Why Am I Filing For Bankruptcy?

What is a bankruptcy estate?

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 through a trustee.

Most people realize that real estate, furnishings and vehicles are items that would be included, butmanypeople are surprised to learn that 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 are also parts of the estate.

The good news for consumer debtors is that most ofthe property of their bankruptcy estate is exempt from administration, which means they are able to keep it. Also, 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. This type of property is often referred to as being “unworthy of administration.”

The debtor must listeverything that he owns on his schedules. A debtor who fails to list all of hisproperty runs the following risks:

1) Having his discharge either denied or revoked;

2) Having what would have otherwise been exempt items be declared to be non-exempt;

3) Subjecting the unlisted property to claims by unsecured creditors or the trustee;

4) In extreme circumstances, fines and jail time.

The assets that are exempt in a bankruptcy estate will vary from State to State.

Some States use their own exemptions, some States use Federal exemptions, and some States allow the debtor to choose between the State and Federal exemptions.

C hoosingthe wrong exemptions or missing exemptions can have a serious effect on your bankruptcy.

Contact an experienced bankruptcy attorney to explore your options.

Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.
I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

Latest posts by Kevin Gipson, New Orleans Bankruptcy Attorney (see all)

No Comments

Sorry, the comment form is closed at this time.