This article is the continuation of a blog that summarizes the property that is included in a debtor’s bankruptcy estate. The first part addressed property acquired in various ways such as after the filing of the bankruptcy case. Part two described marital interests in property. This article briefly discusses federal statutes that specifically provide for the inclusion and exclusion of certain property in a debtor’s bankruptcy estate.
- 541 of Title 11 provides that any bankruptcy case filed voluntarily, involuntarily, or jointly creates an estate. As defined by federal law, a “bankruptcy estate” consists of a debtor’s legal and equitable interests as of the filing of the bankruptcy petition.
Not only does a bankruptcy estate include most of a debtor’s legal and equitable interests as of the commencement of the bankruptcy case, it also includes property that a bankruptcy trustee may recover under Title 11. It may also include any transfer avoided under sections of Title 11, or any lien void under section 506(d), that is preserved for the benefit of the estate.
- 541 of the Bankruptcy Code lists other property that is considered to be part of a debtor’s bankruptcy estate. This includes proceeds, product, offspring, rents, or profits from property of the estate, except for other certain earnings received from services performed by an individual debtor after the filing of the bankruptcy petition (commencement of the case). Also, any interest in property that the estate acquires after commencement of the case is part of the debtor’s bankruptcy estate.
If you are facing debt problems, bankruptcy may be a viable solution. The experienced Sacramento metropolitan area/Northern California defense attorneys at the Montefalcon Law Offices are here to help you if your financial position necessitates the consideration of a bankruptcy case filing under Chapter 7, 11, or 13. Contact us 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.