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 New Hampshire, 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 becomes the temporary legal owner of the debtor's assets and includes all legal or equitable interests of the debtor in property at the time the bankruptcy case is filed. The estate is not just limited to property directly in the debtor's name; it also encompasses property that may be held by someone else if the debtor has an interest in it. The purpose of the estate is to gather the debtor's assets to pay off creditors. However, it's important to note that not all property is subject to liquidation; debtors are allowed to keep exempt property under both federal bankruptcy exemptions and New Hampshire-specific exemptions. The nonexempt assets in the estate are the ones that can be used to pay the debtor's creditors. The exact nature of these exemptions and the process of liquidation are governed by the U.S. Bankruptcy Code and New Hampshire state statutes, as well as decisions by the bankruptcy courts.