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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 Tennessee, 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 property that may be in the possession of someone else but in which the debtor has an interest. The estate is managed by a bankruptcy trustee, who is appointed to oversee the case. The trustee's role includes liquidating any nonexempt assets to pay the debtor's creditors. Tennessee has its own set of exemptions that may differ from federal exemptions, which determine what property the debtor is allowed to keep as exempt from the estate. Creditors are generally paid from the nonexempt assets of the estate, following the priority rules established by the Bankruptcy Code.

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Bankruptcy

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Bankruptcy

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