Case Summary:
The Court sustained the Chapter 7 trustee’s objection to Debtors’ claim of exemptions. The Debtors claimed an exemption in a dairy cooperative equity revolvement account under 11 U.S.C. § 522(d)(10)(E). The cooperative bylaws were clear that redemption of the Debtors’ equity was entirely within the discretion of the board of directors. Neither illness, disability, death, nor age would trigger redemption of the Debtors’ equity. Although the Debtors may have accumulated their patronage equity over time, the Court also determined they did not have a right to receive payment because of their length of service. This term connotes tenure, in the sense of plans conferring benefits based on the number of years of employment.

Statute/Rule References:
11 U.S.C. § 522(d)(10)(E) -- Federal Exemptions - Stock Bonus, Pension, Profitsharing, Annuity

Key Terms:
Exemptions