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The Bankruptcy Estate
15
Flashcards
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Business Interests
Ownership interests in a business are included, but the degree of control and participation can affect their treatment in bankruptcy.
Educational IRAs
Coverdell education savings accounts and 529 plans may be excluded, subject to limitations based on timing of contributions.
Tax Refunds
Tax refunds due to the debtor can be part of the estate if they relate to periods prior to the bankruptcy filing.
Personal Property
Most personal property becomes part of the bankruptcy estate with exceptions for essential items.
Life Insurance Policies
The cash value of life insurance policies may be included in the estate, subject to certain exemptions.
Alimony and Child Support
Alimony and child support are generally excluded from the bankruptcy estate but are considered in determining the debtor's ability to pay debts.
Proceeds from Life Insurance or Death Benefit Plan
Such proceeds may be included, especially if the debtor is the beneficiary and policyholder, with exemptions to protect beneficiaries.
Real Property Owned by the Debtor
Real property is typically included in the bankruptcy estate, but certain exemptions may apply to protect the debtor's home.
Royalties
Royalties are generally included in the estate, especially if the right to receive them existed before filing.
Marital Property
Property jointly owned with a spouse may be partially included, depending on state law and the type of bankruptcy filed.
Inherited Property
Inherited property is included in the estate if the right to inherit arises within 180 days after filing for bankruptcy.
Lawsuit Proceeds
Pending lawsuit settlements or proceeds are included if the cause of action arose before the bankruptcy filing.
Stocks and Bonds
Securities such as stocks and bonds are included in the bankruptcy estate, potentially subject to exemptions.
Retirement Accounts
Most qualified retirement accounts are excluded from the bankruptcy estate under federal law.
Leases and Executory Contracts
Debtors have the option, subject to court approval, to assume or reject executory contracts and unexpired leases.
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