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TITLE 11.
BANKRUPTCY · UNITED STATES CODE
Chapter 5.
Creditors, the Debtor and the Estate
Subchapter III. The Estate
11
USC § 541. Property of the estate
(a) The commencement of a case under section
301, 302,
303
of this title creates an estate. Such estate is comprised of all the following
property, wherever located and by whomever held:
(1) Except as provided in subsections
(b) and (c)(2)
of this section, all legal or equitable interests of the debtor in property
as of the commencement of the case.
(2) All interests of the debtor and the
debtor’s spouse in community property as of the commencement of the case
that is--
(A) under the sole, equal, or joint management and control of the
debtor; or
(B) liable for an allowable claim against the debtor, or for both an
allowable claim against the debtor and an allowable claim against the
debtor’s spouse, to the extent that such interest is so liable.
(3) Any interest in property that the trustee
recovers under section
329(b), 363(n),
543,
550,
553,
or 723
of this title.
(4) Any interest in property preserved for the
benefit of or ordered transferred to the estate under section
510(c) or 551 of this
title.
(5) Any interest in property that would have been
property of the estate if such interest had been an interest of the debtor
on the date of the filing of the petition, and that the debtor acquires or
becomes entitled to acquire within 180 days after such date--
(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the debtor’s
spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit
plan.
(6) Proceeds, product, offspring, rents, or
profits of or from property of the estate, except such as are earnings from
services performed by an individual debtor after the commencement of the
case.
(7) Any interest in property that the estate
acquires after the commencement of the case.
(b) Property of the estate does not include--
(1) any power that the debtor may exercise solely
for the benefit of an entity other than the debtor;
(2) any interest of the debtor as a lessee under
a lease of nonresidential real property that has terminated at the
expiration of the stated term of such lease before the commencement of the
case under this title, and ceases to include any interest of the debtor as a
lessee under a lease of nonresidential real property that has terminated at
the expiration of the stated term of such lease during the case;
(3) any eligibility of the debtor to participate
in programs authorized under the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.; 42
U.S.C. 2751 et seq.), or any accreditation status or State licensure of
the debtor as an educational institution;
(4) any interest of the debtor in liquid or
gaseous hydrocarbons to the extent that--
(A)
(i) the debtor has transferred or has agreed to transfer such
interest pursuant to a farmout agreement or any written agreement
directly related to a farmout agreement; and
(ii) but for the operation of this paragraph, the estate could
include the interest referred to in clause (i) only by virtue of section
365 or 544(a)(3)
of this title; or
(B)
(i) the debtor has transferred such interest pursuant to a written
conveyance of a production payment to an entity that does not
participate in the operation of the property from which such production
payment is transferred; and
(ii) but for the operation of this paragraph, the estate could
include the interest referred to in clause (i) only by virtue of section
365
or 542
of this title;
(5) funds placed in an education
individual retirement account (as defined in section
530(b)(1) of the Internal Revenue Code of 1986) not later than 365 days
before the date of the filing of the petition in a case under this title, but--
(A) only if the designated beneficiary of such account
was a child, stepchild, grandchild, or stepgrandchild of the debtor for
the taxable year for which funds were placed in such account;
(B) only to the extent that such funds--
(i) are not pledged or promised to any entity in
connection with any extension of credit; and
(ii) are not excess contributions (as described in section
4973(e) of the Internal Revenue Code of 1986); and
(C) in the case of funds placed in all such accounts
having the same designated beneficiary not earlier than 720 days nor later
than 365 days before such date, only so much of such funds as does not
exceed $5,000 [Adjusted
every 3 years by section
104.];
(6) funds used to purchase a
tuition credit or certificate or contributed to an account in accordance
with section
529(b)(1)(A) of the Internal Revenue Code of 1986 under a qualified
State tuition program (as defined in section
529(b)(1) of such Code) not later than 365 days before the date of the
filing of the petition in a case under this title, but--
(A) only if the designated beneficiary of the amounts
paid or contributed to such tuition program was a child, stepchild,
grandchild, or stepgrandchild of the debtor for the taxable year for which
funds were paid or contributed;
(B) with respect to the aggregate amount paid or
contributed to such program having the same designated beneficiary, only
so much of such amount as does not exceed the total contributions
permitted under section
529(b)(7) of such Code with respect to such beneficiary, as adjusted
beginning on the date of the filing of the petition in a case under this
title by the annual increase or decrease (rounded to the nearest tenth of
1 percent) in the education expenditure category of the Consumer Price
Index prepared by the Department of Labor; and
(C) in the case of funds paid or contributed to such
program having the same designated beneficiary not earlier than 720 days
nor later than 365 days before such date, only so much of such funds as
does not exceed $5,000 [Adjusted
every 3 years by section
104.];
(7) any amount--
(A) withheld by an employer from the wages of employees
for payment as contributions--
(i) to--
(I) an employee benefit plan that is subject to
title I of the Employee Retirement Income Security Act of 1974 or
under an employee benefit plan which is a governmental plan under section
414(d) of the Internal Revenue Code of 1986;
(II) a deferred compensation plan under section
457 of the Internal Revenue Code of 1986; or
(III) a tax-deferred annuity under section
403(b) of the Internal Revenue Code of 1986;
except that such amount under this subparagraph shall
not constitute disposable income as defined in section
1325(b)(2); or
(ii) to a health insurance plan regulated by State
law whether or not subject to such title; or
(B) received by an employer from employees for payment
as contributions--
(i) to--
(I) an employee benefit plan that is subject to
title I of the Employee Retirement Income Security Act of 1974 or
under an employee benefit plan which is a governmental plan under section
414(d) of the Internal Revenue Code of 1986;
(II) a deferred compensation plan under section
457 of the Internal Revenue Code of 1986; or
(III) a tax-deferred annuity under section
403(b) of the Internal Revenue Code of 1986;
except that such amount under this subparagraph shall
not constitute disposable income, as defined in section
1325(b)(2); or
(ii) to a health insurance plan regulated by State
law whether or not subject to such title;
(8) subject to subchapter
III of chapter
5, any interest of the debtor in property where the debtor pledged or
sold tangible personal property (other than securities or written or printed
evidences of indebtedness or title) as collateral for a loan or advance of
money given by a person licensed under law to make such loans or advances, where--
(A) the tangible personal property is in the possession
of the pledgee or transferee;
(B) the debtor has no obligation to repay the money,
redeem the collateral, or buy back the property at a stipulated price; and
(C) neither the debtor nor the trustee have exercised
any right to redeem provided under the contract or State law, in a timely
manner as provided under State law and section
108(b); or
(9)
any interest in cash or cash equivalents that constitute proceeds of a sale
by the debtor of a money order that is made--
(A) on or after the date that is 14 days prior to the date on which the
petition is filed; and
(B) under an agreement with a money order issuer that prohibits the
commingling of such proceeds with property of the debtor (notwithstanding
that, contrary to the agreement, the proceeds may have been commingled
with property of the debtor), unless the money order issuer had not taken
action, prior to the filing of the petition, to require compliance with
the prohibition.
Paragraph (4) shall not be construed to exclude from the estate any
consideration the debtor retains, receives, or is entitled to receive for
transferring an interest in liquid or gaseous hydrocarbons pursuant to a
farmout agreement.
(c)
(1) Except as provided in paragraph (2) of this
subsection, an interest of the debtor in property becomes property of the
estate under subsection
(a)(1), (a)(2),
or (a)(5)
of this section notwithstanding any provision in an agreement, transfer
instrument, or applicable nonbankruptcy law--
(A) that restricts or conditions transfer of such interest by the
debtor; or
(B) that is conditioned on the insolvency or financial condition of the
debtor, on the commencement of a case under this title, or on the
appointment of or taking possession by a trustee in a case under this
title or a custodian before such commencement, and that effects or gives
an option to effect a forfeiture, modification, or termination of the
debtor’s interest in property.
(2) A restriction on the transfer of a beneficial
interest of the debtor in a trust that is enforceable under applicable
nonbankruptcy law is enforceable in a case under this title.
(d) Property in which the debtor holds, as of the
commencement of the case, only legal title and not an equitable interest, such
as a mortgage secured by real property, or an interest in such a mortgage,
sold by the debtor but as to which the debtor retains legal title to service
or supervise the servicing of such mortgage or interest, becomes property of
the estate under subsection
(a)(1) or (2)
of this section only to the extent of the debtor’s legal title to such
property, but not to the extent of any equitable interest in such property
that the debtor does not hold.
(e) In determining whether any of the
relationships specified in paragraph
(5)(A) or (6)(A)
of subsection
(b) exists, a legally adopted child of an individual (and a child who is a
member of an individual's household, if placed with such individual by an
authorized placement agency for legal adoption by such individual), or a
foster child of an individual (if such child has as the child's principal
place of abode the home of the debtor and is a member of the debtor's
household) shall be treated as a child of such individual by blood.
(f) Notwithstanding any other provision of this title,
property that is held by a debtor that is a corporation described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section
501(a) of such Code may be transferred to an entity that is not such a
corporation, but only under the same conditions as would apply if the debtor
had not filed a case under this title.
[Rev. 5-16-05]
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