Hi all,
In today's BK Ethics Symposium materials, it states that with respect to
spendthrift trusts, a bankruptcy estate possesses an income interest in 1/4
of the payments due per In re Neuton, 922 F2d 1379. Also see, Cal. Prob.
Code Sections 15301-15307.
Happy Holidays,
On Fri, Dec 18, 2009 at 10:14 PM, Dennis McGoldrick wrote:
>
>
> Pat,
> sorry, I give a lot of credit to your opinion, but this misses the point.
> The 180 day rule will capture this inheritance just because the death was
> within 180 days. Doesn't matter that it takes longer to settle the claims.
>
> dennis
>
> --- On *Fri, 12/18/09, Patrick Green * wrote:
>
>
>
> Subject: RE: [cdcbaa] Chapter 7 BK discharged then rescinded by trustee
> To:
cdcbaa@yahoogroups.com
> Date: Friday, December 18, 2009, 3:47 PM
>
>
>
>
> Until the litigation is concluded, debtors inheritance is only an
> expectancy. In addition, if she does have an interest in the estate, the
> creditors of the estate will get their bites first. The bk trustee cannot
> get anything until those issues are settled. After all is said and done and
> the estate is ready for distribution, if she is still entitled to something,
> then the issues of spendthrift provisions in a trust, including a
> testamentary trust, will come into play. Those issues would be controlled
> by the law of the state in which trust is situated or in the state that the
> trust documents choice of law provision indicates.
>
>
>
> Client and bk trustee have a long way to go before either can get anything.
>
>
>
> If you have any questions or concerns, please contact me.
>
>
>
> Pat
>
>
>
> Patrick T. Green, Esq.
>
> Fitzgerald & Green
>
> Attorneys at Law
>
> 1010 E. Union Street
>
> Suite 206
>
> Pasadena, CA 91106
>
> Tel: 626-449-8433
>
> Fax: 626-449-0565
>
> pat@fitzgreenlaw. com
>
>
>
>
>
> *From:* cdcbaa@yahoogroups. com [mailto:cdcbaa@ yahoogroups. com] *On
> Behalf Of *Dennis McGoldrick
> *Sent:* Thursday, December 17, 2009 1:53 PM
> *To:* cdcbaa@yahoogroups. com
> *Subject:* RE: [cdcbaa] Chapter 7 BK discharged then rescinded by trustee
>
>
>
>
>
> Lindsay,
>
>
>
> Steve raises a good point. If there is a trust, may be an antialienation
> provision or some other protection.
>
>
>
> dennis
>
> --- On *Thu, 12/17/09, Steven B. Lever * wrote:
>
>
> Subject: RE: [cdcbaa] Chapter 7 BK discharged then rescinded by trustee
> To: cdcbaa@yahoogroups. com
> Date: Thursday, December 17, 2009, 1:37 PM
>
>
>
> Is the inheritance pursuant to a will or a trust? If a trust there are
> further inquiries that may yield a different result. If it in a will or
> intestate, then I concur with the analysis below. If in a trust you will
> need a copy of the trust to analyze whether it is in the estate or not.
>
>
>
> *From:* cdcbaa@yahoogroups. com [mailto:cdcbaa@ yahoogroups. com] *On
> Behalf Of *Dennis McGoldrick
> *Sent:* Thursday, December 17, 2009 1:22 PM
> *To:* cdcbaa@yahoogroups. com
> *Subject:* Re: [cdcbaa] Chapter 7 BK discharged then rescinded by trustee
>
>
>
>
>
> Lindsey:
>
>
>
> Sorry, facts bad. If the death was within 180 days of filing, the
> inheritance goes to estate.
>
> Litigation over amount will just limit the amount which goes to the estate.
>
>
>
> dennis
>
> --- On *Thu, 12/17/09, Lindsey Green * wrote:
>
>
> Subject: [cdcbaa] Chapter 7 BK discharged then rescinded by trustee
> To: cdcbaa@yahoogroups. com
> Date: Thursday, December 17, 2009, 10:55 AM
>
>
>
> Listmates,
>
>
>
> Facts: Client files a Chapter 7 BK 6/09, which is a no assets case. The
> Chapter 7 BK is discharged 10/1/09. Debtor father dies 12/5/09 and
> debtor may inherit significant funds. Trustee tells debtor that the
> discharge has been *rescinded* due to a clerical error. The trustee sues
> to get the debtor's inheritance to pay creditors. However, the inheritance
> she MAY get is currently in litigation in another state to determine if she
> has any interest; family is fighting her right to the inheritance.
>
>
>
> 1. If her potential inheritance ($400,000) is STILL in litigation in
> another state, can the trustee now go after these funds?
>
>
>
> 2. What is the effect of a Chapter 7, no asset case being discharged and
> then the discharge is rescinded by trustee due to a clerical error? Is this
> valid? It appears that the trustee found out about the inheritance.
>
>
>
> 3. What is the inheritance rule code section? Does trustee have 6
> months from the date of filing the Chapter 7 BK to go after the inheritance?
>
>
>
> 4. What are the debtor's rights?
>
>
>
> Thanks!
>
>
>
> Lindsey Green, Esq.
>
> Gumm & Green
>
>
>
>
>
>
>
>
>
>
>
>
Daniela P. Romero
Law Office of Daniela Romero, APLC
1015 N. Lake Ave., Ste. 115
Pasadena, CA 91104
Telephone:626-817-2611
Facsimile: 626-628-1781
email:
dromerolaw@gmail.com
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Hi all, In today's BK Ethics Symposium materials, it states that with respect to spendthrift trusts, a bankruptcy estate possesses an income interest in 1/4 of the payments due per In re Neuton, 922 F2d 1379. Also see, Cal. Prob. Code Sections 15301-15307.
Happy Holidays,On Fri, Dec 18, 2009 at 10:14 PM, Dennis McGoldrick <
easky1@yahoo.com> wrote:
Pat, sorry, I give a lot of credit to your opinion, but this misses the point. The 180 day rule will capture this inheritance just because the death was within 180 days. Doesn't matter that it takes longer to settle the claims.
dennis--- On Fri, 12/18/09, Patrick Green <
pat@fitzgreenlaw.com> wrote:
[cdcbaa] Chapter 7 BK discharged then rescinded by trusteeTo: n.com>
Subject: [cdcbaa] Chapter 7 BK discharged then rescinded by trustee
To: cdcbaa@yahoogroups. com
Date: Thursday, December 17, 2009, 10:55 AM
Listmates,
Facts: Client files a Chapter 7
BK 6/09, which is a no assets case.The Chapter 7 BK
is discharged 10/1/09.Debtor father dies 12/5/09 and
debtormay inherit significant funds.Trustee tellsdebtor
that the discharge has been rescinded due to a clerical
error. The trustee sues to getthe debtor's inheritance to pay
creditors. However, the inheritance sheMAY get is currently in
litigation in another state to determine if she has any interest; family is
fighting her right to the inheritance.
1. If her potential
inheritance ($400,000) isSTILL in litigation in another state, can
the trustee now go after these funds?
2. What is the
effect of a Chapter 7, no asset case being discharged and then the
discharge is rescinded by trustee due to a clerical error? Is this
valid? It appears that the trustee found out about the inheritance.
3. What is the
inheritance rule code section? Does trustee have 6 months from the
date of filing the Chapter 7 BK to go after the inheritance?
4. What are the
debtor's rights?
Thanks!
Lindsey Green, Esq.
Gumm & Green
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