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The Importance of Your Bankruptcy Estate

The Importance of Your Bankruptcy Estate
"""When your bankruptcy petition is approved, the bankruptcy trustee considers your complete bankruptcy estate before deciding which of your assets will be liquidated to repay creditors. What is your bankruptcy estate exactly?

Your bankruptcy estate consists of all of your assets. It is not necessary that you possess the item physically. The only requirement is that you possess the necessary rights.

This means that out-of-state land and property are included in your estate. In addition, this includes any and all bank and checking accounts, transportation vehicles, equities, bonds, and other financial instruments. It also applies to items such as furniture, kitchen appliances, and so on that you have in your residence. The bankruptcy court has the authority to liquidate any and all of these assets in order to repay the debtors.

Objects that are not regarded part of your bankruptcy are those that you simply possess. For instance, if a family member has lent you his car for a period of time, the vehicle is not yours and is therefore not included in your estate.

If you reside in a community property state, the situation becomes more complicated. In this situation, all jointly owned property with your spouse is deemed part of your bankruptcy estate and is therefore subject to liquidation. However, your spouse's separate property is not deemed part of your bankruptcy estate and is therefore not subject to liquidation.

Properties you are entitled to receive but do not yet possess are also deemed part of your bankruptcy estate. For instance, if you are a recording artist with $10,000 in unpaid royalties, that $10,000 is considered part of your bankruptcy estate, even though you have not yet received it.

The same holds true for salespeople who have amassed sales but have not yet received commission. And for salaried workers who have labored for a number of weeks but have not yet been paid. In other words, any money or property that is owed to you is subject to liquidation as part of your bankruptcy estate.

Anyone who is unsure of his assets as he declares bankruptcy should contact a bankruptcy attorney for assistance in determining the specifics.

" - https://www.affordablecebu.com/
 

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"The Importance of Your Bankruptcy Estate" was written by Mary under the Finance / Wealth category. It has been read 124 times and generated 0 comments. The article was created on and updated on 03 June 2023.
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