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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 West Virginia, 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 may also include property that is in the possession of someone else, provided the debtor has an interest in it. The purpose of the estate is to gather the debtor's assets to pay off creditors. However, not all property is subject to distribution; debtors are allowed to keep exempt property under both federal bankruptcy exemptions and West Virginia's state exemptions. The specific exemptions available may vary, and debtors in West Virginia can choose between state and federal exemptions. The nonexempt assets in the estate are liquidated and used to repay the debtor's creditors according to the priorities established under the Bankruptcy Code.

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Bankruptcy

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Bankruptcy

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