Centennial Bankruptcy Attorney: What is Bankruptcy Estate in Aurora, Littleton and Centennial?
Bankruptcy Estate in Centennial, Littleton, Aurora, Colorado:
When a person files a Chapter 7 bankruptcy in Centennial
, or a Chapter 13 bankruptcy in Aurora
, real property (like your home), personal property (like your car) and other assets become property of the bankruptcy estate. Keep in mind that many people get to keep all of their property in bankruptcy, because all of most of their property is “exempt” or secures a mortgage on which payments are current. Property
which is exempt is not included in the bankruptcy estate. A debtor can claim certain property as exempt on their bankruptcy schedules. It is best to speak in full detail about property in both a Chapter 7 bankruptcy and Chapter 13 bankruptcy in Colorado.
Property in Littleton Chapter 7 Bankruptcy vs. Property in Chapter 13 Bankruptcy
When a person files a Littleton Chapter 7 bankruptcy, a Chapter 7 bankruptcy trustee can “liquidate” any nonexempt property to pay off creditors. When a person files a Chapter 13 bankruptcy, the bankruptcy trustee will not liquidate property. However, the value of any nonexempt property must be paid to both priority and general unsecured creditors over the course of a Chapter 13 bankruptcy repayment plan.
We hope we have answered your question: “What is bankruptcy estate?” Gaining knowledge will help lessen the intimidation of bankruptcy and get you started on your fresh start sooner. Contact experienced Aurora, Centennial and Littleton bankruptcy lawyer Barry Arrington at 303-205-7870 (or submit the “Get Help Now” form) and he will fight to give you the best, fresh start possible.