In re Allen (10-50827)

The chapter 7 trustee objected to the debtor's claim of exemption of an annuity pursuant to Georgia Insurance Code § 33-28-7. The trustee contended that the debtor's exemptions were limited to those allowed under Georgia's bankruptcy specific exemption statute OCGA § 44-13-100. The bankruptcy court agreed and held that the debtor could not claim her annuity as exempt in bankruptcy, pursuant the Georgia Insurance Code. The bankruptcy court also held that the annuity was not a spendthrift trust and thus, was not excluded from property of the estate pursuant to 11 USC § 541 (c)(2) because the annuity was not a trust.

Monday, October 4, 2010