Hold an Interest Adverse to Bankruptcy Estate Law and Legal Definition

"Hold an interest adverse to the estate" is defined as follows: “(1) to possess or assert any economic interest that would tend to lessen the value of the bankruptcy estate or that would create either an actual or potential dispute in which the estate is a rival claimant; or (2) to possess a predisposition under circumstances that render such a bias against the estate.” In re 7677 E. Berry Ave. Assocs., L.P., 419 B.R. 833, 842 (Bankr. D. Colo. 2009)