[CLBS] Property of the Estate

[Paul Ross]

I believe Randy is correct.  I am just reluctant since I don't know how
long your Debtor has been in Ch 7 and whether there is any argument that
this severance check is prepetition.  If that is the case, you still have
exemptions, but you might lose a portion in the Ch 7.  You know your facts,
we are going from the limited information you provided.

On Wed, Oct 19, 2016 at 1:30 PM, Randy French <rfrench at rfrenchlaw.com>
wrote:

> Robin,
>
> Usually the ch 7 estate after a conversion consists only of assets that
> were
> part of the estate at the petition date for the ch 13.  See sec. 348(f).
> Post-petition wages are not part of the estate in a ch 7.  Cf. 541 and
> 1306(a)(2).  If you convert, whether today or later, the wages for
> post-petition services will not be part of the ch 7 estate.  Cf. 348(f)(2).
> (estate consists of assets as of the date of conversion, if the debtor
> converts in bad faith.)
>
> Will the debtor qualify for a ch 7 discharge, i.e., has there been a
> petition in a previous case within 8 years of the ch 13 petition?  Are
> there
> any avoidable transfers that would go away if your client just dismissed
> now
> and refiled?  Of course, that would make the severance check potentially
> pat
> of the ch 7 estate.
>
> You could just let the debtor stay in ch 13 and receive the check and use
> it
> to pay her living expenses for a few months (presumably while she is
> looking
> for replacement employment)   and then convert.  If conditions are
> appropriate.
>
> Good luck.  I know these are tough decisions to make.
>
> Thanks.
> Randy French
>
> Law Office of Randal J. French, P.C.
> Attorneys at Law
> AP.O. Box 836 PBoise, ID 83701 B(208) 859-6881
>
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> -----Original Message-----
> From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Robin Long
> Sent: Wednesday, October 19, 2016 12:10 PM
> To: Bankruptcy list
> Subject: [CLBS] Property of the Estate
>
> Listmates:
>
> I have a client in a chapter 13 who lost her job. I would like to convert
> the case, but she is receiving a severance check today. Since she will
> receive the check prior to the order of conversion will the chapter 7
> trustee have any claim to the funds?
>
> Thank you,
>
> Robin Long
> Attorney
> Foley Freeman PLLC
> 953 S. Industry Way
> Meridian, ID 83642
> P.O. Box 10
> (208) 888-9111
> (208) 888-5130
>
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