Property of the Estate
Key Points
  • When filing for bankruptcy, the court creates an estate. This estate then holds the property until the court makes a decision about what to do with the property and how to best pay creditors.

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:



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Divorce & Money: How to Make the Best Financial Decisions
This book is a practical guide to evaluating assets during divorce. It explains how to determine the real value of marital property including houses, businesses, retirement plans and investments and how to negotiate a settlement that is fair to both sides.

Authors: Violet Woodhouse & Dale Fetherling


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