What is Your Bankruptcy Estate?

Your bankruptcy estate is all of the property that you own that can be included in bankruptcy proceedings. Here are the basics of your bankruptcy estate and how it is determined.

Bankruptcy Estate

Your bankruptcy estate is made up of all of the assets that you own that can be included in a bankruptcy liquidation. Most things in your possession are going to be eligible to be included. For example, your personal property such as your car could be included in your bankruptcy estate. Any money that you have in your bank account can also be included. Any other personal property that the trustee determines can be sold could be included in your estate as well.

Exemptions

There are also certain things that cannot be included in your bankruptcy estate. For example, if you have a pension plan or a 401(k) plan, the money from this cannot be included in your estate. If you have a life insurance policy or an annuity, it may also not be included in your estate. 

Each state is going to have different things that can be included as an exemption. For example, you may be able to keep your house due to a homestead exemption if you have significant equity in it.

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