Legal English Word of the Day/ Bankruptcy Estate
by Dena Falken Esq.
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Bankruptcy Estate
Under bankruptcy law, at the time someone files for bankruptcy, a bankruptcy estate (sometimes called an estate in property) is created. The estate becomes the temporary legal owner of all of the debtor’s assets and property rights, with a few exceptions. Assets that are part of the estate are subject to exclusive control and the protection of the bankruptcy court.
Generally, the filing of a bankruptcy petition fixes a dividing line: property acquired prior to the filing of the petition becomes property of the estate, and property acquired after the filing of the petition, except as just noted, remains the debtor’s.
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