Bankruptcy Terms ExplainedBankruptcy Terms Explained
Many bankruptcy courts hold that a party may have a claim for bankruptcy purposes even if its cause of action has not yet accrued under applicable non-bankruptcy law. However, both individual and entity debtors in these chapters are expected to fund their plans with post-petition income. But for the bankruptcy filing, these assets would have belonged to the debtor.In chapter 7, property of the estate, which include post-petition income in addition to §541 types of assets. Even a right to payment, whether or not the right is reduced to judgment, unsecured, unliquidated, unmatured, contingent or disputed.Property of the Estate"Property of the estate" describes the assets that, in any particular bankruptcy proceeding, are to be used to satisfy pre-filing or pre-confirmation debts and the costs of the bankruptcy proceeding. In chapter 7, §541 excludes from property of the estate is defined by Code §541 as "all legal and equitable interests of the debtor includes all property exempted or redeemed by the debtor after the filing that is statutorily excluded from property of the estate all of an individual debtor's earnings from post-petition