Central District Consumer Bankruptcy Attorney's Association

Does the book actually say Post Petition Rents/Proceeds? Post is a prefix, not a proper noun, was it a heading?
You are correct. The main argument is what percentage of the effort has to be performed postpetition? Even an open escrow can be contested from a trustee, but only if efforts are required to facilitate the closing. The question is the percentage of prepetition work versus postpetition work. Negotiate a reasonable split.
d
Sent from Mars
D
On Jul 27, 2013, at 5:54 PM, Michael Avanesian wrote:
> This section of the book is written in an extremely convoluted way. I used amazon to look at the page referenced.
>
> Section 11 on page 12 is talking about Post Petition Rents/Proceeds. I think a good example to articulate their idea (assuming no other rules applied) is:
>
> Supposed I am paid $3,000 in cash, to stand on the street and hold a sign for 3 days. At 12:00 a.m. on the second day, I file for bankruptcy. This is covered by 541(a)(6), "(6) Proceeds, product, offspring, rents, or profits of or from property of the estate, EXCEPT such as are earnings from services performed by an individual debtor after the commencement of the case."
>
> So I would say $1,000 is prepetition and part of the estate while $2,000 is postpetition and not part of the estate.
>
> I believe when the authors say that "proceeds from personal services by an individual debtor are not property of the estate even if earned before the petition" they mean that money given to an individual debtor, before they file for bankruptcy, for personal services that end up being performed after bankruptcy are not property of the estate.
>
>
> Sincerely,
> Michael Avanesian
> Law Offices of David A. Tilem
> www.tilemlaw.com
> 818-507-6000
>
>
> On Sat, Jul 27, 2013 at 2:36 PM, Leventhal Law Group, P.C. wrote:
>>
>> It holds the door open nicely
>>
>>
>>
>> Jonathan Leventhal, Esq..
>> Leventhal Law Group, P.C.
>> 818-347-5800
>>
>> NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice for ex parte Applications via voicemail or by email. You must comply with California Law and give notice to a person in my office during regular business hours.
>>
>> This email and any attachments thereto may contain private, confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited. If you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto.
>>
>> Leventhal Law Group, P.C. is a Debt Relief Agency under federal law.
>>
>> Note: The Leventhal Law Group, P.C. does not represent you until a written fee agreement has been signed by you and a representative of the Leventhal Law Group, P.C. and all fees listed in the agreement have been paid.
>>
>> On Jul 27, 2013, at 2:33 PM, "pat@fitzgreenlaw.com" wrote:
>>
>>>
>>> But u told us to buy it.
>>>
>>> Sent from my Verizon Wireless BlackBerry
>>> Sender: cdcbaa@yahoogroups.com
>>> Date: Sat, 27 Jul 2013 14:24:24 -0700
>>> To: cdcbaa@yahoogroups.com
>>> ReplyTo: cdcbaa@yahoogroups.com
>>> Subject: Re: [cdcbaa] Clarification Needed on Basic Concept Re. Property of Estate
>>>
>>>
>>> find a shredder and throw the book into it. There are lots of times income earned prepetition are included in the estate. e.g.
>>> real estate commissions when case filed before the closing.
>>> royalties, etc, etc. etc
>>> d
>>> Sent from my iPad
>>>
>>> On Jul 27, 2013, at 9:41 AM, Jeffrey Hsu wrote:
>>>
>>>>
>>>> Imagine the basic scenario in almost every ch7 consumer case: John files ch7 personal BK on Jan 1. The next day after the commencement of the case, on Jan 2, John's employer pays him for work performed before the ch7 case filing. Is that money from the paycheck property of the estate?
>>>>
>>>> My understanding has always been that 541(a)(6) states that the estate includes proceeds of or from property of the estate. Thus the postpetition payment for prepetition services meets the "proceeds" definition because John earned the right to payment prior to filing. The right to payment was property of the estate and thus the actual payment is property is the estate, subject to any applicable exemptions.
>>>>
>>>> Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds from personal services by an individual debtor are not property of the estate, even if earned before the petition." Perhaps I am misreading EZ Rules, but it seems to state the opposite position that John's paycheck in the above scenario would NOT be property of the estate and I can't imagine that is correct.
>>>>
>>>
>>
>
>
cdcbaamailbox@gmail.com>
Sender:
The post was migrated from Yahoo.

Hmmmm, Wes and Larry? Helen, comments?
D
Sent from my iPad
On Jul 28, 2013, at 6:35 PM, "Wesley H. Avery" wrote:
> Hmmm.
>
>
>
> Wesley H. Avery
> Wesley H. Avery, Esq.
> Bankruptcy Trustee
> wavery@rpmlaw.com
> 28005 Smyth Drive, Ste. 117
> Valencia, CA 91355-4023
> (661) 295-4674 (office)
> (661) 430-5467 (fax)
> (661) 618-7376 (cell)
>
>
>
> Certified Specialist
> Bankruptcy Law
> State Bar of California
>
> Board Certified
> Business Bankruptcy Law
> American Board of Certification
>
> CONFIDENTIALITY NOTICE: The information contained in this e-mail transmission is intended only for use of the individual or entity named above. This e-mail transmission , and any documents, files, previous e-mail transmissions or other information attached to it, may contain confidential information that is legally privileged. If you are not the intended recipient of this e-mail transmission, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, dissemination, copying, or other use of this transmission or any of the information contained in or attached to it is strictly prohibited. If you have received this e-mail transmission in error, please immediately notify us by return e-mail transmission or by telephone at (661) 618-7376, and destroy the original e-mail transmission and its attachments without reading it or saving it in any manner. Thank you.
>
>
>
>
>
>
>
>
>
Larry Simons
> Sent: Saturday, July 27, 2013 8:27 PM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Re: Clarification Needed on Basic Concept Re. Property of Estate
>
>
>
>
>
> None are, don't worry
> Sent from my Blackberry
>
>
> Sent: Saturday, July 27, 2013 06:04 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Re: Clarification Needed on Basic Concept Re. Property of Estate
>
>
>
>
> Nice.
>
> A word to the wise, I remember a case somewhere in the past where a doctor owned a clinic. He made x bucks postpetition. The trustee said part of that was profit from the clinic and part was for the docs personal services. The personal services portion was only 30% I think - that would be intensely fact driven. I hope no trustees are reading this.
>
> --- In cdcbaa@yahoogroups.com, Michael Avanesian wrote:
> >
> > This section of the book is written in an extremely convoluted way. I used
> > amazon to look at the page referenced.
> >
> > Section 11 on page 12 is talking about Post Petition Rents/Proceeds. I
> > think a good example to articulate their idea (assuming no other rules
> > applied) is:
> >
> > Supposed I am paid $3,000 in cash, to stand on the street and hold a sign
> > for 3 days. At 12:00 a.m. on the second day, I file for bankruptcy. This is
> > covered by 541(a)(6), "(6) Proceeds, product, offspring, rents, or profits
> > of or from property of the estate, *EXCEPT such as are earnings from
> > services performed by an individual debtor after the commencement of the
> > case.*"
> >
> > So I would say $1,000 is prepetition and part of the estate while $2,000 is
> > postpetition and not part of the estate.
> >
> > I believe when the authors say that "proceeds from personal services by an
> > individual debtor are not property of the estate even if earned before the
> > petition" they mean that money given to an individual debtor, *before they
> > file for bankruptcy*, for personal services that end up being *performed
> > after bankruptcy* are not property of the estate.
> >
> >
> > Sincerely,
> > Michael Avanesian
> > Law Offices of David A. Tilem
> > www.tilemlaw.com
> > 818-507-6000
> >
> >
> > On Sat, Jul 27, 2013 at 2:36 PM, Leventhal Law Group, P.C. wrote:
> >
> > > **
> > >
> > >
> > > It holds the door open nicely
> > >
> > >
> > >
> > > Jonathan Leventhal, Esq..
> > > Leventhal Law Group, P.C.
> > > 818-347-5800
> > >
> > > NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice
> > > for ex parte Applications via voicemail or by email. You must comply with
> > > California Law and give notice to a person in my office during regular
> > > business hours.
> > >
> > > This email and any attachments thereto may contain private, confidential,
> > > and privileged material for the sole use of the intended recipient. Any
> > > review, copying, or distribution of this email (or any attachments thereto)
> > > by others is strictly prohibited. If you are not the intended recipient,
> > > please contact the sender immediately and permanently delete the original
> > > and any copies of this email and any attachments thereto.
> > >
> > > Leventhal Law Group, P.C. is a Debt Relief Agency under federal law.
> > >
> > > Note: The Leventhal Law Group, P.C. does not represent you until a
> > > written fee agreement has been signed by you and a representative of the
> > > Leventhal Law Group, P.C. and all fees listed in the agreement have been
> > > paid.
> > >
> > > On Jul 27, 2013, at 2:33 PM, "pat@..."
> > > wrote:
> > >
> > >
> > >
> > > But u told us to buy it.
> > > Sent from my Verizon Wireless BlackBerry
> > > ------------------------------
> > > *Sender: * cdcbaa@yahoogroups.com
> > > *Date: *Sat, 27 Jul 2013 14:24:24 -0700
> > > *To: *cdcbaa@yahoogroups.com
> > > *ReplyTo: * cdcbaa@yahoogroups.com
> > > *Subject: *Re: [cdcbaa] Clarification Needed on Basic Concept Re.
> > > Property of Estate
> > >
> > >
> > >
> > > find a shredder and throw the book into it. There are lots of times
> > > income earned prepetition are included in the estate. e.g.
> > > real estate commissions when case filed before the closing.
> > > royalties, etc, etc. etc
> > > d
> > > Sent from my iPad
> > >
> > > On Jul 27, 2013, at 9:41 AM, Jeffrey Hsu wrote:
> > >
> > >
> > >
> > > Imagine the basic scenario in almost every ch7 consumer case: John files
> > > ch7 personal BK on Jan 1. The next day after the commencement of the case,
> > > on Jan 2, John's employer pays him for work performed before the ch7 case
> > > filing. Is that money from the paycheck property of the estate?
> > >
> > > My understanding has always been that 541(a)(6) states that the estate
> > > includes proceeds of or from property of the estate. Thus the postpetition
> > > payment for prepetition services meets the "proceeds" definition because
> > > John earned the right to payment prior to filing. The right to payment was
> > > property of the estate and thus the actual payment is property is the
> > > estate, subject to any applicable exemptions.
> > >
> > > Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds
> > > from personal services by an individual debtor are not property of the
> > > estate, even if earned before the petition." Perhaps I am misreading EZ
> > > Rules, but it seems to state the opposite position that John's paycheck in
> > > the above scenario would NOT be property of the estate and I can't imagine
> > > that is correct.
> > >
> > >
> > >
> >
>
>
>

The post was migrated from Yahoo.

Nice.
A word to the wise, I remember a case somewhere in the past where a doctor owned a clinic. He made x bucks postpetition. The trustee said part of that was profit from the clinic and part was for the docs personal services. The personal services portion was only 30% I think - that would be intensely fact driven. I hope no trustees are reading this.
>
> This section of the book is written in an extremely convoluted way. I used
> amazon to look at the page referenced.
>
> Section 11 on page 12 is talking about Post Petition Rents/Proceeds. I
> think a good example to articulate their idea (assuming no other rules
> applied) is:
>
> Supposed I am paid $3,000 in cash, to stand on the street and hold a sign
> for 3 days. At 12:00 a.m. on the second day, I file for bankruptcy. This is
> covered by 541(a)(6), "(6) Proceeds, product, offspring, rents, or profits
> of or from property of the estate, *EXCEPT such as are earnings from
> services performed by an individual debtor after the commencement of the
> case.*"
>
> So I would say $1,000 is prepetition and part of the estate while $2,000 is
> postpetition and not part of the estate.
>
> I believe when the authors say that "proceeds from personal services by an
> individual debtor are not property of the estate even if earned before the
> petition" they mean that money given to an individual debtor, *before they
> file for bankruptcy*, for personal services that end up being *performed
> after bankruptcy* are not property of the estate.
>
>
> Sincerely,
> Michael Avanesian
> Law Offices of David A. Tilem
> www.tilemlaw.com
> 818-507-6000
>
>
> On Sat, Jul 27, 2013 at 2:36 PM, Leventhal Law Group, P.C. wrote:
>
> > **
> >
> >
> > It holds the door open nicely
> >
> >
> >
> > Jonathan Leventhal, Esq..
> > Leventhal Law Group, P.C.
> > 818-347-5800
> >
> > NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice
> > for ex parte Applications via voicemail or by email. You must comply with
> > California Law and give notice to a person in my office during regular
> > business hours.
> >
> > This email and any attachments thereto may contain private, confidential,
> > and privileged material for the sole use of the intended recipient. Any
> > review, copying, or distribution of this email (or any attachments thereto)
> > by others is strictly prohibited. If you are not the intended recipient,
> > please contact the sender immediately and permanently delete the original
> > and any copies of this email and any attachments thereto.
> >
> > Leventhal Law Group, P.C. is a Debt Relief Agency under federal law.
> >
> > Note: The Leventhal Law Group, P.C. does not represent you until a
> > written fee agreement has been signed by you and a representative of the
> > Leventhal Law Group, P.C. and all fees listed in the agreement have been
> > paid.
> >
> > On Jul 27, 2013, at 2:33 PM, "pat@..."
> > wrote:
> >
> >
> >
> > But u told us to buy it.
> > Sent from my Verizon Wireless BlackBerry
> > ------------------------------
> > *Sender: * cdcbaa@yahoogroups.com
> > *Date: *Sat, 27 Jul 2013 14:24:24 -0700
> > *To: *cdcbaa@yahoogroups.com
> > *ReplyTo: * cdcbaa@yahoogroups.com
> > *Subject: *Re: [cdcbaa] Clarification Needed on Basic Concept Re.
> > Property of Estate
> >
> >
> >
> > find a shredder and throw the book into it. There are lots of times
> > income earned prepetition are included in the estate. e.g.
> > real estate commissions when case filed before the closing.
> > royalties, etc, etc. etc
> > d
> > Sent from my iPad
> >
> > On Jul 27, 2013, at 9:41 AM, Jeffrey Hsu wrote:
> >
> >
> >
> > Imagine the basic scenario in almost every ch7 consumer case: John files
> > ch7 personal BK on Jan 1. The next day after the commencement of the case,
> > on Jan 2, John's employer pays him for work performed before the ch7 case
> > filing. Is that money from the paycheck property of the estate?
> >
> > My understanding has always been that 541(a)(6) states that the estate
> > includes proceeds of or from property of the estate. Thus the postpetition
> > payment for prepetition services meets the "proceeds" definition because
> > John earned the right to payment prior to filing. The right to payment was
> > property of the estate and thus the actual payment is property is the
> > estate, subject to any applicable exemptions.
> >
> > Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds
> > from personal services by an individual debtor are not property of the
> > estate, even if earned before the petition." Perhaps I am misreading EZ
> > Rules, but it seems to state the opposite position that John's paycheck in
> > the above scenario would NOT be property of the estate and I can't imagine
> > that is correct.
> >
> >
> >
>

The post was migrated from Yahoo.

There is a Supreme Court case from the 50s or early 60s where the trustee was trying to take the debtor's vacation pay. The debtor took two weeks off postpetition but "earned" it by working for x amount of time prepetition. The Supreme Court, doing some of its best legislative work, said the trustee can't get it. Shows you how firm the concept is that the estate gets everything the debtor owns at the moment of filing. btw, you don't have to throw the book out, just tear out the page. Jon
>
> It holds the door open nicely
>
>
>
> Jonathan Leventhal, Esq..
> Leventhal Law Group, P.C.
> 818-347-5800
>
> NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice for ex parte Applications via voicemail or by email. You must comply with California Law and give notice to a person in my office during regular business hours.
>
> This email and any attachments thereto may contain private, confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited. If you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto.
>
> Leventhal Law Group, P.C. is a Debt Relief Agency under federal law.
>
> Note: The Leventhal Law Group, P.C. does not represent you until a written fee agreement has been signed by you and a representative of the Leventhal Law Group, P.C. and all fees listed in the agreement have been paid.
>
> On Jul 27, 2013, at 2:33 PM, "pat@..." wrote:
>
>
>
> But u told us to buy it.
>
> Sent from my Verizon Wireless BlackBerry
> ________________________________
> Sender: cdcbaa@yahoogroups.com
> Date: Sat, 27 Jul 2013 14:24:24 -0700
> To: cdcbaa@yahoogroups.com
> ReplyTo: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Clarification Needed on Basic Concept Re. Property of Estate
>
>
>
> find a shredder and throw the book into it. There are lots of times income earned prepetition are included in the estate. e.g.
> real estate commissions when case filed before the closing.
> royalties, etc, etc. etc
> d
> Sent from my iPad
>
> On Jul 27, 2013, at 9:41 AM, Jeffrey Hsu wrote:
>
>
>
> Imagine the basic scenario in almost every ch7 consumer case: John files ch7 personal BK on Jan 1. The next day after the commencement of the case, on Jan 2, John's employer pays him for work performed before the ch7 case filing. Is that money from the paycheck property of the estate?
>
> My understanding has always been that 541(a)(6) states that the estate includes proceeds of or from property of the estate. Thus the postpetition payment for prepetition services meets the "proceeds" definition because John earned the right to payment prior to filing. The right to payment was property of the estate and thus the actual payment is property is the estate, subject to any applicable exemptions.
>
> Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds from personal services by an individual debtor are not property of the estate, even if earned before the petition." Perhaps I am misreading EZ Rules, but it seems to state the opposite position that John's paycheck in the above scenario would NOT be property of the estate and I can't imagine that is correct.
>

The post was migrated from Yahoo.

This section of the book is written in an extremely convoluted way. I used
amazon to look at the page referenced.
Section 11 on page 12 is talking about Post Petition Rents/Proceeds. I
think a good example to articulate their idea (assuming no other rules
applied) is:
Supposed I am paid $3,000 in cash, to stand on the street and hold a sign
for 3 days. At 12:00 a.m. on the second day, I file for bankruptcy. This is
covered by 541(a)(6), "(6) Proceeds, product, offspring, rents, or profits
of or from property of the estate, *EXCEPT such as are earnings from
services performed by an individual debtor after the commencement of the
case.*"
So I would say $1,000 is prepetition and part of the estate while $2,000 is
postpetition and not part of the estate.
I believe when the authors say that "proceeds from personal services by an
individual debtor are not property of the estate even if earned before the
petition" they mean that money given to an individual debtor, *before they
file for bankruptcy*, for personal services that end up being *performed
after bankruptcy* are not property of the estate.
Sincerely,
Michael Avanesian
Law Offices of David A. Tilem
www.tilemlaw.com
818-507-6000
On Sat, Jul 27, 2013 at 2:36 PM, Leventhal Law Group, P.C. wrote:
> **
>
>
> It holds the door open nicely
>
>
>
> Jonathan Leventhal, Esq..
> Leventhal Law Group, P.C.
> 818-347-5800
>
> NO EX-PARTE NOTICE VIA VOICE MAIL OR EMAIL: I do not accept e-mail notice
> for ex parte Applications via voicemail or by email. You must comply with
> California Law and give notice to a person in my office during regular
> business hours.
>
> This email and any attachments thereto may contain private, confidential,
> and privileged material for the sole use of the intended recipient. Any
> review, copying, or distribution of this email (or any attachments thereto)
> by others is strictly prohibited. If you are not the intended recipient,
> please contact the sender immediately and permanently delete the original
> and any copies of this email and any attachments thereto.
>
> Leventhal Law Group, P.C. is a Debt Relief Agency under federal law.
>
> Note: The Leventhal Law Group, P.C. does not represent you until a
> written fee agreement has been signed by you and a representative of the
> Leventhal Law Group, P.C. and all fees listed in the agreement have been
> paid.
>
> On Jul 27, 2013, at 2:33 PM, "pat@fitzgreenlaw.com"
> wrote:
>
>
>
> But u told us to buy it.
> Sent from my Verizon Wireless BlackBerry
> ------------------------------
> *Sender: * cdcbaa@yahoogroups.com
> *Date: *Sat, 27 Jul 2013 14:24:24 -0700
> *To: *cdcbaa@yahoogroups.com
> *ReplyTo: * cdcbaa@yahoogroups.com
> *Subject: *Re: [cdcbaa] Clarification Needed on Basic Concept Re.
> Property of Estate
>
>
>
> find a shredder and throw the book into it. There are lots of times
> income earned prepetition are included in the estate. e.g.
> real estate commissions when case filed before the closing.
> royalties, etc, etc. etc
> d
> Sent from my iPad
>
> On Jul 27, 2013, at 9:41 AM, Jeffrey Hsu wrote:
>
>
>
> Imagine the basic scenario in almost every ch7 consumer case: John files
> ch7 personal BK on Jan 1. The next day after the commencement of the case,
> on Jan 2, John's employer pays him for work performed before the ch7 case
> filing. Is that money from the paycheck property of the estate?
>
> My understanding has always been that 541(a)(6) states that the estate
> includes proceeds of or from property of the estate. Thus the postpetition
> payment for prepetition services meets the "proceeds" definition because
> John earned the right to payment prior to filing. The right to payment was
> property of the estate and thus the actual payment is property is the
> estate, subject to any applicable exemptions.
>
> Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds
> from personal services by an individual debtor are not property of the
> estate, even if earned before the petition." Perhaps I am misreading EZ
> Rules, but it seems to state the opposite position that John's paycheck in
> the above scenario would NOT be property of the estate and I can't imagine
> that is correct.
>
>
>
This section of the book is written in an extremely convoluted way. I used amazon to look at the page referenced.Section 11 on page 12 is talking about Post Petition Rents/Proceeds. I think a good example to articulate their idea (assuming no other rules applied) is:
Supposed I am paid $3,000 in cash, to stand on the street and hold a sign for 3 days. At 12:00 a.m. on the second day, I file for bankruptcy. This is covered by 541(a)(6), "(6) Proceeds, product, offspring, rents, or profits of or from property of the estate, EXCEPT such as are earnings from services performed by an individual debtor after the commencement of the case."
So I would say $1,000 is prepetition and part of the estate while $2,000 is postpetition and not part of the estate.I believe when the authors say that "proceeds from personal services by an individual debtor are not property of the estate even if earned before the petition" they mean that money given to an individual debtor, before they file for bankruptcy, for personal services that end up being performed after bankruptcyare not property of the estate.
Sincerely, Michael AvanesianLaw Offices of David A. Tilemwww.tilemlaw.com
818-507-6000
On Sat, Jul 27, 2013 at 2:36 PM, Leventhal Law Group, P.C. <law@3yl.com> wrote:
It holds the door open nicely :-)Jonathan Leventhal, Esq..Leventhal Law Group, P.C.
The post was migrated from Yahoo.

find a shredder and throw the book into it. There are lots of times income earned prepetition are included in the estate. e.g.
real estate commissions when case filed before the closing.
royalties, etc, etc. etc
d
Sent from my iPad
On Jul 27, 2013, at 9:41 AM, Jeffrey Hsu wrote:
> Imagine the basic scenario in almost every ch7 consumer case: John files ch7 personal BK on Jan 1. The next day after the commencement of the case, on Jan 2, John's employer pays him for work performed before the ch7 case filing. Is that money from the paycheck property of the estate?
>
> My understanding has always been that 541(a)(6) states that the estate includes proceeds of or from property of the estate. Thus the postpetition payment for prepetition services meets the "proceeds" definition because John earned the right to payment prior to filing. The right to payment was property of the estate and thus the actual payment is property is the estate, subject to any applicable exemptions.
>
> Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds from personal services by an individual debtor are not property of the estate, even if earned before the petition." Perhaps I am misreading EZ Rules, but it seems to state the opposite position that John's paycheck in the above scenario would NOT be property of the estate and I can't imagine that is correct.
>
>

The post was migrated from Yahoo.

Imagine the basic scenario in almost every ch7 consumer case: John files ch7 personal BK on Jan 1. The next day after the commencement of the case, on Jan 2, John's employer pays him for work performed before the ch7 case filing. Is that money from the paycheck property of the estate?
My understanding has always been that 541(a)(6) states that the estate includes proceeds of or from property of the estate. Thus the postpetition payment for prepetition services meets the "proceeds" definition because John earned the right to payment prior to filing. The right to payment was property of the estate and thus the actual payment is property is the estate, subject to any applicable exemptions.
Now the EZ Rules for the BK Code Book says on Pg12 of the book: "proceeds from personal services by an individual debtor are not property of the estate, even if earned before the petition." Perhaps I am misreading EZ Rules, but it seems to state the opposite position that John's paycheck in the above scenario would NOT be property of the estate and I can't imagine that is correct.

The post was migrated from Yahoo.