505 B.R. 8
9th Cir. BAP2014Background
- Debtors filed a Chapter 13 petition on October 31, 2011; no plan was confirmed.
- Bankruptcy trustee demanded turnover of an inheritance received by Mr. Dale more than 180 days after petition date.
- On August 11, 2012, Mr. Dale's mother died, creating an inheritance of about $30,000.
- Inheritance was disclosed to the bankruptcy court on December 13, 2012.
- Trustee moved to dismiss the case; Debtors proposed using $10,000 of the Inheritance to fund remaining plan payments.
- Bankruptcy court held the Inheritance was property of the estate under § 1306(a)(1); Debtors appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a postpetition inheritance over 180 days after filing but before plan confirmation is estate property | Dales: inheritance not estate property or only to be used in Chapter 7 reconciliation | Trustee: inheritance is estate property under § 1306(a)(1) and § 541(a)(5)(A) | Affirmed; inheritance is property of the estate |
Key Cases Cited
- Lamie v. U.S. Tr, 540 U.S. 526 (2004) (statutory interpretation guidance for plain language text)
- Carroll v. Logan, 735 F.3d 147 (4th Cir. 2013) (supports inclusion of postpetition inheritances in Chapter 13 estate under 1306(a))
- In re Waldron, 536 F.3d 1239 (11th Cir. 2008) (post-confirmation benefits as estate property under § 1306(a))
- In re Nott, 269 B.R. 250 (Bankr. M.D. Fla. 2000) (early view supporting § 1306(a) reach over postpetition inheritances)