Contact:
Hartgen
(703) 739-0800
jhartgen@abiworld.org
ABI POLL:
CROP RELIEF PAYMENTS NOT PART OF ESTATE IF BANKRUPTCY FILED PRIOR TO AID
LAW
size='3'>August 18, 2006, Alexandria, Va.
size='3'>—Results of a recent American Bankruptcy Institute online
poll showed that respondents were closely divided over the question of
whether a disaster crop relief payment should be included in the estate
of a farmer who declared bankruptcy prior to enactment of the 2003
Agricultural Assistance Act. Thirty-three percent “agreed
strongly,” while 33 percent “disagreed strongly” that
the disaster relief payment should not be included in the debtor’s
estate.
However, an additional 18
percent of respondents “agreed somewhat” that the disaster
relief payment should not be included in the estate, while 12 percent
“disagreed somewhat.” Four percent of the respondents did
not know or had no opinion on the issue.
The poll is based
on Bracewell v. Kelley
(In re Bracewell), 11th Cir., No. 11951,
6/30/06, in which the Eleventh Circuit Court of Appeals held that a
disaster relief payment issued under the 2003 Agricultural Assistance
Act to a farmer who had declared bankruptcy in 2002 was not part of the
farmer’s estate. Judge Edward E. Carnes wrote that while the
relief payment was a result of the farmer’s pre-bankruptcy filing
losses, it should not be included in the farmer’s estate because
it was the result of a statute passed post-petition.
ABI members and members of the
public were welcome to submit their response to the statement:
“A federal crop disaster- relief payment received for
pre-petition losses under legislation enacted post-petition is NOT
property of the estate.” The latest ABI Quick Poll was
open to the public for voting from Aug. 3-10.
ABI’s weekly Quick Poll
is posted on ABI’s home page,
href='/AM/Template.cfm?Section=Home'>
color='#800080' size='3'>www.abiworld.org. ABI members and the public are invited to respond
to a question on a timely bankruptcy or insolvency issue. Visit
size='3'>http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick
Polls.
###
ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
11,500 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals, providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit www.abiworld.org. For additional conference
information, visit
href='/Content/NavigationMenu/MeetingsEvents/UpcomingEvents/Events_Intro_Page1.htm'>
color='#0000ff'>http://www.abiworld.org/conferences.html.