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In re Marybeth Perry

Bankr. No.: 
06-50237
Chapter: 
7
Date of Decision: 
February 13, 2009
Issue: 
Whether a claim for unpaid child support was property of the estate within the meaning of 11 U.S.C. § 541 and was thus subject to turnover pursuant to 11 U.S.C. § 542?
Ruling: 
No. Under South Dakota law, Debtor held the child support payments as trustee for her children. Debtor did not have an equitable interest in the child support arrearage. Thus, the arrearage was not property of the estate and was not subject to turnover.
Full Bankruptcy Court Decision: