December 6, 2016
Chapter 13 and Post Discharge
In our previous two entries, we examined the interaction between the bankruptcy estate and a cause of action, and the timing of claims and whether they are sufficiently rooted in the pre bankruptcy past of the Debtor. With this final entry, we look a bit more closely at claims of the Debtor and chapter 13 bankruptcy cases and claims arising post discharge.
The Chapter 13 - An Expansive Definition
In chapter 13 bankruptcy, the concept of “property of the estate” is broadened and is not so rigidly defined as simply pre-petition and post-petition property. In chapter 13, “property of the estate” is “broadened to include not only the property brought into the estate via § 541, but also all legal or equitable interests of the debtor in property, including earnings from services performed by the debtor, that the debtor acquires after the commencement of the case but before the case is closed, dismissed or converted to a case under chapter 7, 11 or 12, whichever occurs first. 11 U.S.C. § 1306(a)(1) and (a)(2).” In other words, in a chapter 13, property of the estate may include causes of action that arise post-confirmation.