Saturday, July 31, 2010

social security - exempt funds - bankruptcy

In re Carpenter - 8th Cir. - July 30, 2010


http://www.ca8.uscourts.gov/opndir/10/07/092897P.pdf


Bankrupt's lump sum payment from the Social Security Administration (SSA) was exempt and should not be included in his bankruptcy estate, under 42 U.S.C. § 407 (“[N]one of the moneys paid . . . under this [Social Security Act] shall be subject to . . . the operation of any bankruptcy or insolvency law.”).


The court rejected the argument that the social security proceeds were property of the estate pursuant to 11 U.S.C. § 541 (including “all legal or equitable interests of the debtor in property as of the commencement of the case,” and not excluding social security payments).

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