CHAPTER 5 THE STATE OF THE CHAPTER 13 ESTATE

• Jurisdiction: United States

CHAPTER 5 - THE STATE OF THE CHAPTER 13 ESTATE

As with many issues in bankruptcy law, the Bankruptcy Code does not always provide clear instruction and is subject to the court's interpretation. Questions regarding post-petition acquired property, a post-petition increase in income, and vehicles seized pre-petition all fall into this camp. Chapter 5 discusses the evolving law and practice surrounding these issues.

Section 541 limits property of the estate to property that was acquired within 180 days of filing. Section 1306 expands the property of the estate for chapter 13 cases. The answer to when (if ever) the property of the estate vests with the debtor is not clearly set out in the Code, and courts have had different interpretations.

Section 541 contemplates post-petition-acquired property such as an estate inheritance, life insurance inheritance, or divorce settlement. In chapter 13, however, a common change that may benefit both creditors and debtors is an increase in income. A debtor's increased income usually comes to light due to the...