When an individual person, business or government entity either voluntarily files a bankruptcy petition, or creditors of an individual, business or government entity file the petition, the filing creates a bankruptcy estate. The 'estate' is all property interests of the debtor at the time of filing commencement (though some property is excluded or exempted from the estate, such as an individual's personal residence). A trustee is then appointed by the estate for the administration of the bankruptcy. The US Attorney General appoints and supervises United States Trustees for For individuals in a chapter 7 or 11 the bankruptcy estate is a taxable entity under the federal income tax law, but for corporations under Chapter 12 or 13 is not a taxable entity. Once the estate is created, the bankruptcy proceeds under one of the applicable chapters of the bankruptcy code.
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When an individual person, business or government entity either voluntarily files a bankruptcy petition, or creditors of an individual, business or government entity file the petition, the filing creates a bankruptcy estate. The 'estate' is all property interests of the debtor at the time of filing commencement (though some property is excluded or exempted from the estate, such as an individual's personal residence). A trustee is then appointed by the estate for the administration of the bankruptcy. The US Attorney General appoints and supervises United States Trustees for For individuals in a chapter 7 or 11 the bankruptcy estate is a taxable entity under the federal income tax law, but for corporations under Chapter 12 or 13 is not a taxable entity. Once the estate is created, the bankruptcy proceeds under one of the applicable chapters of the bankruptcy code.
