by will, devise, or inheritance; as a result of a property settlement agreement with a spouse or an interlocutory or final divorce decree; or as a beneficiary of a life insurance policy or a death benefit plan.
According to bankruptcy attorney Scott Blotter, property in a Chapter 13 estate is not limited to property """"as of the commencement of the case,"" but also includes any interest you acquire after the commencement of the case but before it is closed, dismissed, or converted. Chapter 13 property also includes earnings from services performed after filing for bankruptcy but before case closure, dismissal, or conversion.""""
Interestingly, 11 U.S.C. 541 expressly excludes ERISA-qualified retirement programs. This means that the majority of 401ks and similar plans are excluded from the bankruptcy estate. They are unavailable for distribution to creditors by the trustee.
Additionally, Utah has several exemptions that protect property from trustee seizure. The Utah exemptions can be found in Title 78, Chapter 23 of the Utah Code. Among the principal exemptions are:
You may have equity of up to $20,000 in your primary residence. If your spouse is also on the property's title, each of you may have up to $20,000 in equity (for a total of $40,000). The property must be in Utah and is limited to the home and up to 1 acre of surrounding land.
You may have a maximum of $2,500 in equity in a single vehicle. Your name must appear on the vehicle's title.
There is a $500 exemption for each of the following line items:
Sofas, seats, and other furniture
Kitchen and dining room tables and chairs
Animals, literature, and musical instruments; heirlooms and other sentimental objects.
Exemption of $3,500 for professional books and instruments of the trade
The following exemptions do not have a dollar limit:
Burial plot
Laundry and drying
Appliances: refrigerator freezer stove microwave sewing machine
Clothing, as well as Bedding and beds.
There are additional exemptions available. I recommend that you consult with an attorney to determine whether the aforementioned exemptions apply to your situation and whether other exemptions may be available. To qualify for Utah's exemptions, you must have lived in Utah for two years prior to the case's initiation. If you have not resided in Utah for the two years preceding the filing of your case, you must use either the exemptions of another state or the federal exemptions. Again, an attorney should be consulted to determine which exemptions apply.
In Utah, there is no specific exemption for currency. Therefore, any money you have in a standard checking or savings account belongs to the estate, and the trustee will likely require you to give over the balances on the day you file. Tax refunds are also not exempt, and you may be required to turn over your tax refund (even if you have not yet received it) to the trustee. The trustee will keep your case open until s/he receives your tax returns and the estate's proportionate share of your tax refund.
Filing for bankruptcy is analogous to ringing a bell; once rang, it cannot be unrung. Once you file for bankruptcy, your bankruptcy estate is established and cannot be modified. Prior to filing for bankruptcy, it is of the utmost importance that you examine your assets and the available exemptions. Thus, you can organize your assets to minimize the number of items seized by the trustee.""
" - https://www.affordablecebu.com/
