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ABI Journal

522

An Exempt Asset Effectively Loses Its Exemption in Chapter 13

Lower courts are split on whether an exempt asset is included in the calculation of “projected disposable income” in chapter 13.

To Impair an Exemption, Judicial Lien Must Attach to Property the Debtor Already Owns

A judicial lien may be avoided under Section 522(f) only if the lien attached after the debtor acquired the property.

Eighth Circuit Has No Per Se Rule Disallowing Exemptions for IRAs in Divorce

Eighth Circuit may have rejected blanket disallowance of exemptions for retirement accounts transferred in divorce.

Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.

Bankruptcy Code

Treasury Offset Program Can’t Be Used After Bankruptcy, District Judge Says

Now on the district court bench, then-Bankruptcy Judge Frank Volk was upheld in a tricky case involving the government’s right of setoff.

Even a $3 Million Claim for Severance Is Exempt in Illinois as Wages, Easterbrook Says

Pleas to injustice and unfairness failed to persuade the Seventh Circuit to depart from a state law exemption for wages.

An Inherited IRA Can Be Exempt Under State Law When It’s Not in Section 522(b)(3)(C)

A divided Rhode Island Supreme Court ruled that an inherited IRA, not exempt under federal law, is exempt under state law.