In order for you to be granted relief from your debts by filing for bankruptcy, you are going to have to disclose every property interest you own or are entitled to receive.   These disclosures will be made in your bankruptcy petition.

When you file the bankruptcy petition with the court, your bankruptcy estate is automatically created.  Your property interests include all personal property, all real property, and any other interest in property you might own at the time the bankruptcy petition is filed.  Property of the estate is not limited to property located in the United States.  If you have property anywhere in the world, that property is part of your bankruptcy estate.

Generally, the bankruptcy estate’s interest in property is no greater than the debtor’s interest at the time of the filing of the bankruptcy petition.  The primary exception to this rule is for property recovered by the bankruptcy trustee by use of the trustee’s avoidance powers.  These powers enable the bankruptcy trustee to undue certain transfers of property and payments to creditors that occur before the bankruptcy petition is filed.  Another common exception to this rule includes property acquired by the debtor within 180 days of the petition filing by any of the following means: inheritance, property settlement agreement with the debtor’s spouse, or life insurance policy payout.

Much, if not all, of the property comprising your bankruptcy estate will be protected from creditors and will be yours to keep once the administration of your case is complete.  Before filing your petition, your attorneys will explain to you what property is protected and what, if any, is not.  Your attorney’s goal is to eliminate any unpleasant surprises that could arise in your bankruptcy case.

* Acknowledgment for “The Pug Father” at http://www.flickr.com/photos/fleur-design/1394346975/ for use of his photo.