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 Indiana, as in other states, the commencement of a bankruptcy case results in the creation of a bankruptcy estate, which is a central concept in bankruptcy proceedings. This estate is comprised of all the debtor's legal or equitable interests in property at the time the bankruptcy case is filed. The estate includes not only property directly owned by the debtor but also property that others may hold if the debtor has an interest in it. The role of the estate is to serve as a temporary legal owner of the debtor's assets. The bankruptcy trustee manages the estate and liquidates nonexempt assets to pay off the debtor's creditors. Indiana has its own set of exemptions that determine which property a debtor can keep as exempt from the estate. These exemptions are outlined in the Indiana Code and can include items like a primary residence, personal property, and retirement accounts, among others. The specific exemptions available and the process of liquidating assets to satisfy creditor claims are governed by both federal bankruptcy law and Indiana state statutes.