A Chapter 7 Debtor`s Agreement To Pay A Creditor

The opening of bankruptcy proceedings creates a “remission”. The estate technically becomes the temporary legal owner of all the debtor`s assets. It consists of all legal interests or right of convenience of the debtor of the property at the beginning of the proceedings, including assets held or held by another person if the debtor has an interest in the property. As a rule, the debtor`s creditors are paid out of the undeased assets of the estate. To qualify for an exemption under Chapter 7 of the Bankruptcy Act, the debtor may be a natural person, partnership, company or other business entity. 11 U.S.C§ 101 (41), 109 (b). .

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