{"id":811,"date":"2018-01-05T15:16:57","date_gmt":"2018-01-05T21:16:57","guid":{"rendered":"http:\/\/www.mankatobankruptcy.com\/blog\/?p=811"},"modified":"2018-01-05T15:16:57","modified_gmt":"2018-01-05T21:16:57","slug":"bankruptcy-estate","status":"publish","type":"post","link":"https:\/\/www.mankatobankruptcy.com\/blog\/bankruptcy-estate\/","title":{"rendered":"The Role of a \u201cBankruptcy Estate\u201d When Filing for Bankruptcy in Worthington, MN"},"content":{"rendered":"

In every type of bankruptcy case, whether a Chapter 7 case or Chapter 13 case, a separate, distinct legal entity called the \u201cbankruptcy estate\u201d is created by operation of 11 U.S.C. \u00a7541 of the bankruptcy code.\u00a0 This \u201cbankruptcy estate\u201d is in fact a separate, legal being from the person filing for bankruptcy relief.\u00a0 When a bankruptcy case is filed, all a filer\u2019s property is thrown into the bankruptcy estate.\u00a0 In other words, when a person files for bankruptcy relief, all of that person\u2019s property actually belongs to the bankruptcy estate.\u00a0 However, the drafters of the bankruptcy code did not want a person to emerge out of the bankruptcy process completely destitute and without any property to reorganize. Therefore, the bankruptcy code provides for various value allotments or value limitations called bankruptcy exemptions that allow a filer to reclaim property back out of the bankruptcy estate and retain it.\u00a0 In most cases, a person\u2019s bankruptcy exemptions will be sufficient to allow one to retain all of one\u2019s property.\u00a0 If you are thinking about filing for bankruptcy in Worthington, MN, Behm Law Group, Ltd. provides legal advice and assistance throughout the process.<\/p>\n

Chapter 7<\/strong> Estate<\/strong>: If you qualify for Chapter 7, the bankruptcy trustee appointed by the bankruptcy court to administer your bankruptcy case will review all of your property in the bankruptcy estate and analyze whether some of the property will not be able to be protected with your bankruptcy exemptions.\u00a0 To the extent that some of the property can\u2019t be protected with your bankruptcy exemptions, that property will be labeled \u201cnonexempt\u201d, and the trustee will be able to sell it and distribute the value to your creditors.<\/p>\n

Chapter 13<\/strong> Estate<\/strong>: Chapter 13 bankruptcy is designed to restructure your debts into a manageable payment plan that lasts three to five years. The bankruptcy trustee<\/a>, you, and your lawyer will work together to draft a repayment plan that the court will approve. A feasible plan is determined by your types of debts<\/a>, your exemptions, and the value of the property in your bankruptcy estate.<\/p>\n

What Makes Up the Bankruptcy Estate? <\/strong><\/p>\n

The property included in a bankruptcy estate is determined by Section 541<\/a> of the bankruptcy code. Although each bankruptcy case and each bankruptcy estate is different, the bankruptcy estate can be comprised of the following:<\/p>\n