Date of Decision:
February 16, 2012
Whether a debtor’s accrued vacation pay is property of the estate within the meaning of 11 U.S.C. § 541?
Accrued vacation pay is property of the estate. If the debtor is in possession, custody, or control of any such vacation pay, the debtor must turn it over to the trustee. However, if the debtor is not in possession, custody, or control of any such vacation pay and has only accrued vacation time, the debtor may turn over either the vacation time or its value (which, depending on the terms of the debtor’s employment, may not be its face value). If the debtor turns over the vacation time, the trustee may then attempt to recover the debtor’s accrued vacation pay from the debtor’s employer.
Full Bankruptcy Court Decision: