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Property of the Estate

Property of the estate is that property that is subject to administration in bankruptcy. Creditors claims are satisfied from property of the estate. Under BRA s541, the concept of property of the estate is broadly defined to include essentially "all legal or equitable interests of the debtor in property as of the commencement of the case." The courts have interpreted s541 so as to give the concept of property to reach all property in which the debtor has any interest as of the date of the bankruptcy. See especially, United States v. Whitman Pools, Inc., 462 U.S. 198, 103 S.Ct. 2309 (1983). It should be noted that while very broadly defined the concept of property of the estate generally includes only property in which the debtor has an interest on the date of bankruptcy. Thus, post-petition earnings (but not income from property owned on the date of bankruptcy) and property acquired after the bankruptcy is commenced with assets that are not part of the estate are not included in the property of the estate. BRA s541(a)6), (a)(7). These important exceptions are designed to serve the purpose of bankruptcy to give the debtor a "fresh start" financially.