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What does a bankruptcy estate consist of?

A) The debtor's unpaid debts
B) The debtor's business operations
C) The debtor's interests in property
D) The debtor's financial liabilities

1 Answer

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Final answer:

A bankruptcy estate consists of all interests of the debtor in property, which includes tangible and intangible assets, real estate, personal property, and financial assets.

Step-by-step explanation:

The question asks about the composition of a bankruptcy estate. A bankruptcy estate consists of all the legal or equitable interests of the debtor in property at the time of the bankruptcy filing. This includes, but is not limited to, tangible and intangible assets, real estate, personal property, and financial assets. Thus, the correct answer is C) The debtor's interests in property. Unpaid debts and financial liabilities are obligations of the debtor and are not part of the bankruptcy estate, while business operations could be included in the debtor's interests in property but are not alone representative of the entirety of a bankruptcy estate.

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