Bankruptcy often provides a necessary fresh start for individuals experiencing financial problems and difficulty repaying debts. An experienced and qualified bankruptcy attorney may help reduce stress and uncertainty by providing valuable assistance throughout the entire bankruptcy process.
After it is explained that the property in their bankruptcy estate may be used to repay unsecured creditors, clients typically ask: “What property is included in my bankruptcy estate? Federal law defines a bankruptcy estate with the provision that any bankruptcy case filed voluntarily, involuntarily, or jointly creates an estate.
A “bankruptcy estate” consists of a debtor’s legal and equitable interests as of the commencement of the bankruptcy case. This includes real and personal property, tangible and intangible property. All property is included in the bankruptcy estate unless specifically excluded by an exemption or federal law.
Certain interests in property that would have been property of the estate had they been an interest of the debtor on the date of the filing of the petition, and the debtor acquires or becomes entitled to acquire within 180 days after the filing of the petition, are property of the bankruptcy estate.
These interests include property acquired by bequest, devise, or inheritance. Finally, assets acquired within 180 days of the bankruptcy filing in a debtor’s capacity as a beneficiary of a life insurance policy or death benefit plan are property of the bankruptcy estate.
Stay tuned for Part Two to learn more!
To learn more about bankruptcy, contact Alberto Montefalcon, an experienced Sacramento metropolitan area/Northern California bankruptcy attorney. Contact his office online or schedule a consultation at any of our three conveniently located offices. Telephone our downtown Sacramento office at (916) 444-0440, our South Sacramento office at (916) 399-9944, or our Concord office at (925) 222-5929.