November 29, 2016
- Part 1 - Notes on claims or causes of action that arise before, during, and after a bankruptcy case, and whether those claims are property of the estate.
“When” is a cause of action property of the estate? The answer can be extremely complex. This is especially true when the debtor has a cause of action that may not have matured pre-petition. In answering this question, bankruptcy practitioners are required to determine when the cause of action matured. Thereafter, the bankruptcy practitioner must distinguish between pre-petition, post-petition, post-confirmation, and post-discharge causes of actions. Depending upon where the cause of action falls in relation to the bankruptcy filing, the debtor may or may not be entitled to keep all of the proceeds generated from the cause of action. Alternatively, the bankruptcy estate might be entitled to the proceeds.