Patterson v. Shumate,
504 U.S. 753, 112 S.Ct. 2242, 119 L.Ed. 2d 519 (1992) (Blackmun,
to the U.S. Court of Appeals for the 4th Circuit
ERISA benefits are not property
of the estate. An anti alienation provision in an ERISA
qualified pension plan constitutes a restriction on transfer
enforceable under "applicable nonbankruptcy law" for
purposes of the 11 U.S.C. § 541(c)(2) exclusion of property
from the debtor's chapter 7 bankruptcy estate. The Court held
"applicable nonbankruptcy law" language of 11 U.S.C.
§ 541(c)(2) included federal as well as state law.
Chiu v. Wong,
16 F.3d 306 (8th Cir. 1994)
Under Minnesota law, the former
partner of a chapter 13 debtor's husband sufficiently traced
the proceeds of his converted partnership property into the
debtor's homestead. Thus, he was entitled to a constructive
trust on the homestead to the extent that funds for the
purchase of the home came from the partnership assets.
Security State Bank v. Nieman,
1 F.3d 687 (8th Cir. 1993).
In a chapter 13 the bankruptcy
estate continues to exist post confirmation. This case appears
to be in disagreement with the majority opinion of Laughlin
v. Internal Revenue Service, 912 F.2d 197 (8th
Cir. 1990) as to the issue of property of the estate.
Laughlin v. Internal Revenue
Service, 912 F.2d
197 (8th Cir. 1990)
The Internal Revenue Service
did not violate the automatic stay by serving a chapter 13
trustee with a notice of levy upon funds owed to taxpayers
from chapter 13 debtors. The debtors, estate, and creditors
were unaffected by the levy. The strong, well-reasoned
dissent, was filed and is usually the version quoted. The
property of the estate issue was decided differently by
another panel of the 8th Circuit in Security
State Bank v. Nieman, 1 F.3d 687 (8th
In Re Rutt,
98 B.R. 490 (Bankr. D. Neb. 1988), aff'd sum nom, Laughlin
v. Internal Revenue Service, 98 B.R. 494 (D. Neb.
1989), Laughlin v. Internal Revenue Service,
912 F.2d 197 (8th Cir. 1990)
undistributed and future payments to the chapter 13 trustee do
not constitute property of the estate and are not protected
from an IRS levy by the automatic stay. The words "except
as otherwise provided in the plan or order confirming the
plan" . . . "simply accommodates those debtors who
utilize the option of vesting title to specific property to an
entity other than himself or herself as part of the
plan." IRS permitted to levy upon payments by debtor
chapter 13 trustee to collect taxes owed by debtor's counsel. But
see Security State Bank v. Nieman, 1 F.3d
687 (8th Cir. 1993).
Koch v. Myrvold,
784 F.2d 862 (8th Cir. 1986).
Property inherited more than
180 days after the original Chapter 11 petition was filed was
not property of the estate notwithstanding subsequent
conversion of case to Chapter 7.
Resendez v. Lindquist,
691 F.2d 397 (8th Cir. 1982)
Funds held by the trustee in a
confirmed chapter 13 case become property of the chapter 7
estate upon conversion of the chapter 13 case to a chapter 7
case, and the funds are not subject to exemption.
In Re John & Sandra Chavez,
Bk. No. 94-40020 (Bankr. D. Neb. September 27, 1994) (Chapter
13) (Judge John C. Minahan, Jr.)
Child support arrearages are
property of the bankruptcy estate.
In Re Tworek,
107 B.R. 666 (Bankr. D. Neb. 1989) Neb. Bkr. 89:610 (Judge
An inheritance received by a
debtor more than 180 days after the commencement of a chapter
13 bankruptcy case was property of the chapter 13 estate and
became property of the chapter 7 estate upon conversion to the
chapter 7 case. Therefore, the inheritance could be claimed by
the subsequent chapter 7 trustee.
In Re Cudabeck,
22 B.R. 914 (Bankr. D. Neb. 1982), Neb. Bkr. 82:126 (Judge