Central District Consumer Bankruptcy Attorney's Association

Hale:
All the residuals based on work already performed are property of the estate, regardless of when they are received; they aren't future windfalls or future earned income. I have a fair bit of experience dealing with Trustees on residual cases. Give me a call if you'd like to discuss strategy on how to exempt, or we can talk on Saturday at CDCBAA.
Jim
James R. Selth
Weintraub & Selth, APC
12121 Wilshire Boulevard, Suite 1300
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
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In a potential Chapter 7 case, debtor will get residuals for a film based on
in large part upon the yet-to-be-determined DVD sales. (film comes to DVD
in next couple of months). This check could conceivably be larger than the
wild card. Question: will his residual check, potentially received in six
months after filing, be exemptable, assuming it's under the wild card? Are
residuals absolutely safe if received after the six months' window?

The way I understand it, if income already has been earned and is yet to be
received, it's property of the estate (e.g.: real estate commissions in
escrow at filing). If it's post-petition (and especially post-discharge)
income, it's not property of the estate (e.g.: income received by most folks
after their Ch7 case is done). So, the issue, as I see it, is this: are
residuals contingent on future DVD sales but on a movie already shot
"already earned" or based on a future contingency, and thus outside the
estate?

Hale
In a potential
Chapter 7 case, debtor will get residuals for a film based on in large
part upon the yet-to-be-determined DVD sales. (film comes to DVD
in next couple of months). This check could conceivably be larger than the wild
card. Question: will his residual check, potentially received in sixmonths after filing, be exemptable, assuming it's under the wild card? Are
residuals absolutely safe if received after the six months'
window?

The way I understand
it, if income already has been earned and is yet to be received, it's
property of the estate (e.g.: real estate commissions in escrow at
filing). If it's post-petition (and especially post-discharge) income,
it's not property of the estate (e.g.: income received by most folks after their
Ch7 case is done). So, the issue, as I see it, is this: are
residuals contingent on future DVD sales but on a movie already shot "already
earned" or based on a future contingency, and thus outside the
estate?

Hale

The post was migrated from Yahoo.