By: Derek Hawkins//July 24, 2017//
7th Circuit Court of Appeals
Case Name: John Carroll, et al. v. Joji Takada, Chapter 7 Bankruptcy Trustee
Case No.: 14-3576
Officials: EASTERBROOK, WILLIAMS, and SYKES, Circuit Judges
Focus: Bankruptcy Exemption – Fully Vested Interest
In their Chapter 7 bankruptcy petition, John and Catherine Carroll claimed a $30,000 exemption for Catherine’s interest in a trust settled by her since deceased parents. The bankruptcy trustee objected, and the bankruptcy court sustained the objection and struck the exemption. The district court affirmed and so do we. Catherine’s trust interest fully vested before the Carrolls filed for bankruptcy, so the property belongs to the bankruptcy estate.
Affirmed