Define: Bankruptcy Estate

A bankruptcy estate refers to all the legal and equitable interests of a debtor in property at the time of filing for bankruptcy. When an individual or entity files for bankruptcy, their assets become part of the bankruptcy estate, which is administered by a trustee appointed by the court. The bankruptcy estate includes a wide range of assets, such as real estate, personal property, financial accounts, investments, and legal claims. The purpose of the bankruptcy estate is to ensure fair distribution of assets among creditors and to facilitate the debtor’s discharge of debts. Depending on the type of bankruptcy filed for, different rules and exemptions may apply to determine which assets are included in the bankruptcy estate and how they are treated during the bankruptcy process.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.