Bankruptcy Estate

Upon the filing of the bankruptcy a bankruptcy estate is created. This means that you, the debtor, do not own anything anymore rather your bankruptcy estate now owns everything that you owned. The bankruptcy estate is its own separate legal entity. It now owns everything and your debts are now its debts. This is the key that makes the bankruptcy system work. In essence what we do is set up a straw man and load him down with all of your debt then see if we are able to pay that debt by selling his stuff (or if he can pay it off over time by making payments). If we can then we sell the stuff that can be sold, or has value, and we pay as many and as much of the creditors as we can. If we cannot afford to pay a creditor or group of creditors then those debts get discharged