Gordon v. Wadsworth (In re Gordon)
- Summarized by Steven Mulligan , Coan, Payton & Payne, LLC
- 7 years 11 months ago
- Gordon, et al. v. Wadsworth, Case No. 14-1257 (10th Cir. June 26, 2015) (published)
- Balance of funds paid out of retirement plan that was in debtors’ savings account on the petition date is not exempt under Colorado’s exemption statute - C.R.S. § 13-54-102(1(s).
- Procedural context:
- The Bankruptcy Court sustained the trustee’s objection to debtors’ claim that funds in their savings account were exempt retirement account funds and the US District Court affirmed. This appeal followed and the lower courts’ interpretation of Colorado statutes is reviewed de novo. After looking at the statute, the 10th Circuit found that the straightforward meaning of Colorado’s exemption statute is that it exempts only property, including funds, held in or payable from a retirement plan; not funds that had already been distributed.
- Chapter 7 debtors’ assets included approximately $2,000.00 in a saving account which represented the balance of a prepetition lump sum distribution from a retirement account. The funds were used for living expenses and had not been commingled with money from other sources.
- Hartz, Gorsuch, Matheson
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!