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Bankruptcy

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Commencement of a bankruptcy case creates an estate. The estate technically becomes the temporary legal owner of all the debtor's property. It consists of all legal or equitable interests of the debtor in property as of the commencement of the case, including property owned or held by another person if the debtor has an interest in the property. Generally speaking, the debtor's creditors are paid from nonexempt property of the estate.

In Connecticut, as in other states, the commencement of a bankruptcy case results in the creation of a bankruptcy estate, which is governed by federal law under the Bankruptcy Code. This estate becomes the temporary legal owner of the debtor's property, encompassing all legal or equitable interests of the debtor in property at the time the bankruptcy case is filed. This includes not only property directly owned by the debtor but also property held by others in which the debtor has an interest. The purpose of the estate is to ensure that the debtor's nonexempt assets are distributed to creditors in accordance with the provisions of the Bankruptcy Code. Exemptions that allow a debtor to keep certain property from being distributed to creditors are also defined by federal statutes and can be supplemented by Connecticut state law. The process is overseen by a bankruptcy trustee, who administers the estate and liquidates nonexempt assets to pay the debtor's creditors.

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Bankruptcy

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Connecticut State Code

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Bankruptcy

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