Capital and Finance

Government Contractors and Bankruptcy: The Automatic Stay Applies to Government Agencies

“Property of the estate” and the “automatic stay” are two of the Bankruptcy Code’s quintessential concepts.  Upon the filing of a bankruptcy petition, the debtor’s property becomes part of the bankruptcy estate.  The concept of property of the estate under the Code is extremely broad, consisting of all legal or equitable interests of the debtor in property wherever located and by whomever held.  Most issues in bankruptcy begin with practioners asking the question: “Does this involve property of the estate?”