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Scott v. Decker (In re Decker) (Case No. 17-50297; A.P. No. 19-05006) 09/30/2020

The chapter 7 trustee filed a complaint against the chapter 7 debtor and his company seeking, among other requests, turnover of postpetition transfers of property of the estate.  The parties agreed that all of the stock of the debtor’s S Corporation became property of the estate at filing, but the defendants disagreed with the trustee over whether the transferred property was property of the estate.  The defendants asserted that the property at issue fell within the “earnings exception” in section 541(a)(6).  Ruling on cross motions for summary judgment, the Court held that the amounts transferred attributable to services preformed prepetition and certain shareholder distributions were property of the estate.  The Court granted judgment as a matter of law in favor of the trustee.

Wednesday, September 30, 2020
Chapter 7 Issues
Property of the Estate