Life ins is not property of the Dallas chapter 7 estate, and depending on the terms
of the plan, may not be property of the C13 estate it may be exempt
under applicable law, and if not, this is one situation where vesting
on confirmation is better. I did a case a while back on a post-petition personal injury claim and whether it had an impact on the chapter 13 case. The Court ruled that even though it was property of the estate, it would not be included in the
chapter 7 liquidation analysis. Here is the blurb from the Court’s website:
In re Sanchez, 270 B.R. 322 (Bankr. D.N.H. 2001) (denying Trustee’s motion
to dismiss or convert and confirming Debtor’s amended Chapter 13 Plan;
holding that, although it is property of the Chapter 13 estate pursuant to
11 U.S.C. § 1306, a potential personal injury claim that arose post-petition
should not be factored into the hypothetical liquidation analysis pursuant
to 11 U.S.C. § 1325(a)(5) because in a Chapter 7 proceeding, the trustee
would not be able to liquidate a post-petition cause of action).
“The duty to file a supplemental schedule in accordance with this subdivision in accordance with this subdivision continues notwithstanding the closing of the case, except that the schedule need not be filed in a Chapter 11, Chapter 12 or Chapter 13 case with respect to property acquired after entry of the order confirming a chapter 11 plan or discharging the Dallas bankruptcy debtor in a chapter 12 or chapter 13 case.” Recent Texas bankruptcy case states that it is not property of the estate because it was not received within 180 days of filing. Also addresses some other issues that may arise in this situation.
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By definition, an estate is “the nature and extent of an owner’s rights with respect to land or other property.” However, people see their estate as land, building structures and portfolio assets in cash and investments, but often overlook the potential worth of their personal property that surrounds them. In fact, recently completed personal property appraisals show that the value of personal items and collections housed within the home were appreciably more than the sale of the house and its land.