Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 5 of 5

Creditor with inadequate notice holds a fully nondischargeable obligation following a Chapter 7 discharge.

Seventh Circuit Announces the Appointment of Daniel R. Fine to the U.S. Bankruptcy Court for the Northern District of Illinois

Community property works differently in bankruptcy. I probably don’t have to tell you that. On the issue of assets and debts, community property is pretty straightforward. All of the community property comes into the estate upon the commencement of a bankruptcy case, even when only one spouse files. §541(a)(2). Every creditor with a right to be paid from the community can file a claim, regardless of which spouse incurred the debt. §101(7). So creditors of the nonfiling spouse are proper claimants in the filing spouse’s bankruptcy case. If the bankruptcy estate contains separate property as well, §726 creates a distribution scheme that segregates community assets from separate property assets in paying community and non community debts. So far pretty straightforward. Right?

Modification of a confirmed Chapter 13 plan cannot be based on speculative, uncertain, and anticipated conditions; the “best interest of creditors test” is determined at the time of confirmation of the original plan and not the confirmation of a modified plan.