If this is your first Bankruptcy, there might be a few terms that you don’t yet fully understand. Although we can definitely discuss your bankruptcy case in further detail, we hope it will be helpful to explain one of the key terms you will need to know: the Bankruptcy Estate. This estate is a key factor for chapter 7, chapter 11, and chapter 13 bankruptcy lawyers. A bankruptcy estate is essentially all of your property (and property rights) that the bankruptcy court has the right to manage. Generally, the estate includes anything that you happen to own when you file for bankruptcy. There are different rules and technicalities that go with each type of Bankruptcy case.
When you file for bankruptcy with Chapter 7, a trustee (impartial from you) goes to liquidate the assets within the Bankruptcy estate. For those who are not yet aware, Liquidation is where securities and/Anything exempt from the bankruptcy estate will not be liquidated. However, it is usually companies or groups that end up having to liquidate assets in the bankruptcy estate. When it is an individual filing for Chapter 7 bankruptcy, the lawyer will push to have little-no assets dissolved.
Although the Chapter 7 bankruptcy is convenient, others consider liquidation of all of their assets to be a little too much. That is why we would like to address the Chapter 11 bankruptcy. Most Chapter 11 cases settle on the debtor remaining in control of their assets. This is what is called a “debtor in possession.” The debtor is essentially the trustee. This might be why Chapter 11 is favored among corporate organizations.
The estate can include everything that the debtor owns when they file for bankruptcy (similar to Chapter 7 bankruptcy). However, it can also include anything you purchase while the bankruptcy case is in full swing. The great part about the Chapter 13 bankruptcy is that you get to keep all of your assets. This must be done with the permission of the court before you dispose of anything yourself. But with the right Chapter 13 bankruptcy lawyer, that should be no problem. This is one reason why the Chapter 13 bankruptcy is ideal for many people.
The Bankruptcy Estate is something that many people stress over. They fear the possibility of losing too much of their life to pay off their debts. But when you partner with RLC, we can make sure that you receive the best possible outcome. We look through your financial situation and help you determine which kind of bankruptcy would be most appropriate. With us by your side, your Bankruptcy estate will be in the right hands. For information on acquiring your own chapter 7, chapter 11, and/or chapter 13 bankruptcy lawyer, please feel free to contact RLC Bankruptcy today.