The bankruptcy estate is composed of the assets held by the applicant at the time of filing for bankruptcy. However, there are some exceptions to what can be included in the estate. When a natural person goes through bankruptcy, the court will limit the estate so that a certain range of assets critical to protecting the debtor’s life cannot be included.
Furthermore, if a trustee goes through bankruptcy, the trust that he or she oversees is not included in the estate. Finally, if a debtor was leasing something when he or she applied for bankruptcy, the leased object is not included in the estate but the rights to the lease itself are.
If you have any questions about contracts with a bankrupt company please contact our office for a legal consultation.