Kentucky and Indiana Bankruptcy Lawyer
A bankruptcy estate is created upon the filing of the bankruptcy petition in an individual or joint bankruptcy matter. The estate encompasses everything that you own (your legal, tangible and equitable interests) on the date of filing. Exemptions and exclusions are decided at a later date. An experienced bankruptcy lawyer can provide you with a detailed analysis of what may happen to your estate when you file for bankruptcy. However, the contents of the estate may vary from state to state, as Kentucky uses federal laws to govern bankruptcy exemptions while Indiana utilizes state law exemptions.
We at the office of Richard A. Schwartz, Bankruptcy Attorney, have over 25 years of experience handling all types of bankruptcy issues for clients, including providing advice and guidance on matters pertaining to the bankruptcy estate, property exclusions and exemptions.
A bankruptcy estate does not mean the same thing as the estate of a deceased individual in the estate planning and administration sense of the word. The bankruptcy estate is like a snapshot of your assets, property, debts and overall financial situation at the time of the filing of the Chapter 7, Chapter 13 or Chapter 11 bankruptcy.
Determining the Property of the Bankruptcy Estate
State laws govern the determination of available assets, property rights and potential interests of the debtor. However, it is federal law that determines when property and assets are considered property of the bankruptcy estate.
It is important to determine what property belongs to the bankruptcy estate and what does not. Property of the estate is within the exclusive jurisdiction of the court and is protected by an automatic stay created by the bankruptcy filing. When you file bankruptcy, and property is not part of the bankruptcy estate, it is not subject to protections afforded by the filing.
Property Fully Excluded From the Bankruptcy Estate
There are very few situations in which property or assets are excluded from the estate. These exclusions can include:
- Property in which the debtor only holds the legal title and no equitable interest
- Spendthrift trusts and other trusts in some instances
- Most qualified retirement plans
Property Which May Be Partially Exempt From the Bankruptcy Estate
Some property may be partially exempt from the bankruptcy estate, up to a certain dollar amount, such as:
- Homesteads
- Vehicles
- Clothes
- Household goods and furnishings
- Personal injury claims
- Life insurance
Contact a Southern Indiana and Kentucky Bankruptcy Attorney
For additional details on property of the bankruptcy estate and exemptions, in Kentucky call 502-638-2441, in Indiana call 812-399-0959, and toll free in either at 866-270-4495 or simply contact us online to set up your free initial consultation with one of our New Albany or Louisville bankruptcy estate attorneys. Evening, weekend and in-home appointments are available for your convenience.
