Property of the Estate
This practice note provides an overview of Section 541 of the Bankruptcy Code, entitled “Property of the Estate.” Understanding whether or not an asset is property of the bankruptcy estate and subject to the jurisdiction of the bankruptcy court when a case is filed is the first step to understanding the bankruptcy risk inherent in any transaction. The inquiry is under state or other applicable non-bankruptcy law. It requires parties to look at the property and property rights at issue and determine whether or not any of part of that bundle of rights would become property of the estate, if one party to the transaction were to become a debtor under the Bankruptcy Code. This gating issue is of paramount importance, since the bankruptcy court presiding over a bankruptcy will have exclusive jurisdiction over any and all property of the estate. 28 U.S.C. § 1334(e). The term property of the estate is defined in Section 541(a) of the Bankruptcy Code.
This practice note also discusses the status of certain intangible property, including social media accounts, goodwill, domain names, and telephone numbers as property of the estate, as well as restrictions on the sale of estate property consisting of personally identifiable information, as follows:
- Property of the Estate
- Tangible and Intangible Property
- Special Intangible Property
- Customer Lists and Personally Identifiable Information
To read the full practice note, please click here.
“Property of the Estate,” by Ira L. Herman was published as a Lexis Practice Advisor® Practice Note on February 26, 2020. Reprinted with permission.