The bankruptcy estate is the total collection of assets that creditors must split upon the bankruptcy of a debtor person or corporation. It is often less than the total amount of the bankrupt person’s debts but splitting it fairly among all creditors is an integral part of the bankruptcy system.
The estate contains all of the assets that the debtor has an ownership interest in at the time the bankruptcy proceedings start. This also includes assets that are located overseas such as real property or bank accounts in a foreign country. The estate can further include assets that the liquidator manages to save or acquire after the start of the bankruptcy. However, when the debtor is a person and not a corporation, there are certain assets important to protecting the debtor’s life that are not included in the bankruptcy estate.
If you have any questions about bankruptcy please contact our office for a legal consultation.