Case Summary:
Creditors of chapter 11 debtor contended that they were entitled to the revenues generated by the debtor’s use of certain plastic molds.  These revenues were generated by the debtor prior to the petition date, but were in the debtor’s possession when the case was filed.  The creditors contended that they were entitled to the funds because the debtor did not own the molds.  Given the absence of any trust relationship between the parties, however, and the extraordinarily broad definition of “property of the estate” under 11 U.S.C. § 541, the court concluded that the debtor held legal and equitable title to the funds when the bankruptcy was filed.  Accordingly, the creditor’s adversary proceeding was dismissed.

Statue/Rule References:
11 U.S.C. § 541 -- Property of the Estate

Key Terms:
Property of the Estate