Document Type
Research Memorandum
Publication Date
2024
Abstract
(Excerpt)
Section 541(a) of title 11 of the United States Code (the "Bankruptcy Code") defines "property of the estate" broadly to include "all legal or equitable interests of the debtor in property as of the commencement of the [bankruptcy] case." Congress did not identify social media accounts as property of the estate under section 541(a)(1) of the Bankruptcy Code. Bankruptcy courts have generally concluded that business social media accounts constitute property interests. As such, these accounts often fall under the purview of the bankruptcy estate.
This memorandum discusses the courts’ analysis of the classification and ownership of social media accounts containing both personal and business content in bankruptcy cases. Specifically, it focuses on three distinct legal approaches to determine whether these accounts constitute "property of the estate" under section 541(a)(1) of the Bankruptcy Code, including a factor-based test, a streamlined test, and a framework analysis.