What is the bankruptcy estate? Review 11 U.S.C. §541 as provided in chapter 3 and list five assets that are considered part of the bankruptcy estate

Question

What will be an ideal response?

Answer 1

All of the debtor's legal and equitable interest in property at the moment the bankruptcy petition is filed creates the bankruptcy estate. A bankruptcy estate is a new legal entity separate from the debtor, much like a probate estate in the field of trusts and estates. The bankruptcy estate also includes property and income that is acquired after the commencement of the case, so it is important for clients filing for bankruptcy to be aware of their obligations to inform the attorney of any after-acquired property.

According to Bankruptcy Code 11 U.S.C. §541, the bankruptcy estate consists of:

• Property owned by the debtor, either in his or her possession or possession of another (e.g., real estate, bank accounts, stocks and bonds, patents, copyrights, and trademarks).
• Property the debtor is entitled to receive (e.g., wages, commissions, and tax refunds).
• Profits or appreciation in value generated by the property of the estate (e.g., rents and interest).
• Property that was fraudulently transferred prior to the bankruptcy filing (e.g., debtor sells his motorcycle to his cousin for $1.00 or quitclaims his interest in real property to a family member).