Bankruptcy Estate

Definition

When a person files for bankruptcy, all of their property and legal interests at that moment are gathered into a legal 'estate' controlled by a trustee on behalf of creditors. The key question in this case is whether that estate also captures property and lawsuits that arise after the bankruptcy filing but while the case is still open.

Examples

• •Keathley's personal injury lawsuit is at issue because the question is whether it became part of his bankruptcy estate even though his injury happened after he filed for bankruptcy.

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