[Exemptions] Liane is injured in an automobile accident and cannot work. She cannot pay her bills and files for bankruptcy relief under Chapter 7. Federal exemptions apply, and Liane lists as exempt $25,000 in equity in her residence; interest in a vehicle of $2,000; interest in jewelry of $400; and retirement funds in her individual retirement account. Her creditors filed an objection to all claimed exemptions except for the home equity claim.
-Once the petition is filed, which of the following forms Liane's bankruptcy estate?

Question

Quizplus · Accepted Answer

CA bankruptcy estate under Chapter 7 includes all of the debtor's prepetition assets. However, the debtor is allowed to claim certain exemptions, which are then not used to pay creditors. The estate is primarily composed of nonexempt assets, as these are the assets that can be liquidated to pay off creditors. Exempt assets are protected to some extent and are not readily available to satisfy creditor claims.

[Exemptions] Liane Is Injured in an Automobile Accident and Cannot