Lehighton & Carbon County Bankruptcy Estate Attorney
The important date in bankruptcy is the petition date, namely the date at which the debtor files a bankruptcy petition with the Bankruptcy Court (the “Petition Date”). Upon the filing of a bankruptcy petition, a bankruptcy estate is created which consists of all of the property interests of the debtor as of the Petition Date. The purpose of this provision is to permit a bankruptcy trustee to assume title to your assets if you have non-exempt equity in your property to sell the same to realize cash in order to distribute the non-exempt proceeds to creditors (see exemptions tab). This mechanism functions differently among the various chapters of bankruptcy.
Generally speaking, property of the estate consists of all your interests in any property that you may own, including property that may not be legally titled in your name but that in which you have an equitable interest. This may include causes of action that you may have against a third party. This may also include any inheritances that your receive within 180 days after your Petition Date as well. It is extremely important that you fully disclose all of your property interests when you file a bankruptcy petition. Failure to disclose assets results in property never vesting back to you but remaining property of the estate.
Depending on which bankruptcy case you file determines when property of the estate reverts back out of the bankruptcy estate. In a Chapter 7 case, your property will revest back to you when your chapter 7 case is administratively closed with a final decree being entered by the Bankruptcy Court or when the bankruptcy trustee abandons your property back to you. In Chapters 11, 12, and 13, normally you can choose in your reorganization plan if your property of the estate revests back to you during the lifetime of your plan or at the time of a court order being entered confirming your proposed repayment plan to creditors.
Contact An Experienced Lehighton & Carbon County Bankruptcy Estate Attorney Today
The mechanics of vesting and revesting of property of the estate in a bankruptcy case is relatively complex and it is important to consult an attorney before considering a bankruptcy petition. Bankruptcy is an extremely fact intensive area of the law that requires a tailored analysis to your unique factual circumstances. Call Lehighton & Carbon County bankruptcy estate attorney Weaver today for a consultation to review the facts of your particular case should you wish to consider filing a bankruptcy petition. Attorney Weaver’s bankruptcy practice includes serving clients in Carbon County, Schuylkill County, Monroe County, Luzerne County, Pike County, Lehigh County, Northampton County, and Berks County.