Carroll v. Logan
- Summarized by Elizabeth Gunn , United States Bankruptcy Court, District of Columbia
- 12 years 3 months ago
- Citation:
- Carroll v. Logan, ___ F.3d ___, Case No. 13-1024 (4th Cir. October 28, 2013).
- Tag(s):
-
- Ruling:
- The Fourth Circuit adopted the majority view that section 1306 modifies the section 541 time period in Chapter 13 cases. Accordingly, a Chapter 13 bankruptcy estate consists of (i) property described in section 541 and (ii) the kind of property described in section 541 and acquired before the Chapter 13 case is closed, dismissed, or converted. The Bankruptcy Court was affirmed.
- Procedural context:
- Direct appeal from the Bankruptcy Court for the Northern District of North Carolina finding that inheritance obtained more than 180 days after petition date is part of Chapter 13 debtors' bankruptcy estate pursuant to 11 U.S.C. section 1306(a), reviewed de novo.
- Facts:
- Mr. and Mrs. Carroll (the "Debtors") filed a joint petition for relief under Chapter 13 in February 2009. The Debtors' chapter 13 plan was confirmed in August 2009 and provided for payments over 60 months and a 3.8% dividend to unsecured creditors. In August 2012, over three years after the petition date, the Debtors notified the Bankruptcy Court that Mr. Carroll's mother had passed away in December 2011 and he anticipated receiving an inheritance of approximately $100,000. The Chatper 13 trustee filed a motion to modify the Debtors' plan to include an amount of the inheritance, if and when received, sufficient to pay in full all general unsecured claims. Over the Debtors' objection, the Bankruptcy Court held that the inheritance was property of the bankruptcy estate and ordered that it be included in the Debtors' plan. The Debtors noticed their appeal and the Bankruptcy Court stayed its order and certified a direct appeal to the Fourth Circuit.
- Judge(s):
- Niemeyer, Wynn, and Floyd
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