The Eighth Circuit had held that a debtor has an ‘inchoate’ property interest in avoidance actions before bankruptcy, but Judge Collins ruled that a lender can’t have a lien.
In Section 522(b)(3), Congress made sure that ‘retirement funds’ are exempt in bankruptcy even if they aren’t exempt in states that don’t permit federal exemptions.
Curtailing equitable mootness will benefit the bankruptcy community by fostering appellate decisions that clarify the standards for confirmation of chapter 11 plans.
