When you file for a bankruptcy, a bankruptcy estate is set up. All of your property that you own goes into this estate. Except those items that are considered exempt. Most people want to know which of their property is going to be affected by their bankruptcy action. All of those items that end up in the bankruptcy estate are now controlled by the bankruptcy trustee. This individual determines what will happen to them, and where the proceeds of selling them will go.
There are different forms of bankruptcy with the most common ones being the Chapter 13 and Chapter 7 bankruptcy and the rules for each of these are different, as is with the way the bankruptcy estate is handled. In most cases any property you receive after you file for a Chapter 7 bankruptcy will not become part of your estate file. With a chapter 13 bankruptcy this is different. Any property you receive during your bankruptcy becomes part of the estate. This form of bankruptcy usually continues for three to five years.
It is very important you use a Dayton bankruptcy lawyer. This professional will ensure that you get all the possible exemptions applicable to your bankruptcy case. Exemptions are property that does not have to be included in your bankruptcy and cannot be touched by the bankruptcy trustee.
Your property is categorized when you file for bankruptcy. There is the property that you own at the time of your filing which you also possess. Then there is the property that is owned but not possessed by you, or properties that you are going to receive and then community property. These are just some of the categories and there are others.