[CLBS] IC 67-5333

[Tecla Markosky]

Question:

Assume a state employee has 500 hours of accumulated sick leave. This sick
leave has real value both as a prepaid employee benefit during employment
and also as a payment for medical insurance after retirement.How is an
asset like this treated if the employee files for bankruptcy? Does she get
to keep the value or is it exempt or ???

I know that 11 U.S.C.A. § 541(c)(2) allows a debtor's property interest to
be excluded from the bankruptcy estate if the interest is nontransferable
under "applicable nonbankruptcy law." Does a benefit like sick leave under
IC 67-5333 fall within this provision?


Thank you,

Tecla

-- 
Tecla Markosky
TECLA MARKOSKY, PLLC
401 E. Veatch Street
(208) 874-7627
(888) 877-4307 fax
www.teclamarkosky.com

Risley Law Office
*Associate Attorney*
1443 Idaho Street
Lewiston, ID 83501
(208) 743-5338

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