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Bankruptcy and Divorce: Property of the Estate:
(Provided by: Divorce Source, Inc. Staff)

A. Debts for Spousal and Child Support (11 U.S.C. 523(a)(5))

When a bankruptcy case is filed, an estate is created. Property of the estate is protected by the automatic stay. In a chapter 7 case, the trustee sells or otherwise liquidates the nonexempt property of the estate and distributes the proceeds to creditors. Most transactions dealing with property of the estate require court approval. See 11 U.S.C. 363 (use, sale, or lease of property). The automatic stay does not bar post-petition enforcement of support awards against property that is not property of the estate. 11 U.S.C. 362(b)(2). Section 541 of the Bankruptcy Code defines what constitutes property of the estate:

Go to: Bankruptcy and Divorce Informational Section

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