Commencement of a bankruptcy case creates in effect an “estate” by operation of law. The estate consists of the various types of property described in the Bankruptcy Code as “property of the estate.”
In Chapter 7 liquidation cases, all such nonexempt property must be liquidated and the proceeds distributed to creditors.
In Chapter 11, 12 and 13 cases, the debtor retains the property of the estate, but the value of such property affects the minimum amount that generally must be offered to nonconsenting general creditors in the plan of reorganization.