Asked by Zarria Turner on May 19, 2024
Verified
In a Chapter 11 or 13 proceeding, the bankruptcy estate of an individual includes wages earned after commencement of the proceeding.
Chapter 11
A chapter of the U.S. Bankruptcy Code that provides for reorganization, usually involving a corporation or partnership, allowing the debtor to keep its business alive and pay creditors over time.
Chapter 13
A form of bankruptcy in the United States that allows individuals with a regular income to reorganize their debts and make a plan to repay all or part of them.
Bankruptcy Estate
The collective pool of assets comprising the legal debtor's property that is available to be used for the payment of debts in a bankruptcy proceeding.
- Understand the responsibilities of trustees and the significance of the estate in the context of bankruptcy processes.
Verified Answer
NH
Natalie HackettMay 22, 2024
Final Answer :
True
Explanation :
In a Chapter 13 proceeding, the bankruptcy estate includes wages and other income received by the debtor after the commencement of the case, as these earnings are typically used to fund the repayment plan. In Chapter 11, post-petition earnings of individual debtors can also be considered part of the estate under certain circumstances.
Learning Objectives
- Understand the responsibilities of trustees and the significance of the estate in the context of bankruptcy processes.