Case Summary:
The chapter 13 debtor received an inheritance more than 180 days after the petition date but well before all payments under the plan were completed. The chapter 13 trustee argued that the debtor's inheritance was property of the estate under § 1306(a)(1) because it was property that the debtor acquired after the commencement of the case but before the case was closed, and that a plan modification to provide an additional dividend to unsecured creditors was required. The debtor argued that § 1306(a)(1) could not draw into the estate any inheritance a debtor receives or obtains the right to receive more than 180 days post-petition, by virtue of the time-limiting language in § 541(a)(5), so she was not required to use the inheritance to pay unsecured creditors. The court held that an inheritance received more than 180 days after the petition date can be property of the bankruptcy estate under § 1306(a)(1), and the plan may be modified to account for the inheritance. The court did not determine whether any particular modification of the plan was appropriate because no modified plan had yet been proposed.
Statute/Rule References:
11 U.S.C. § 541(a)(5)
11 U.S.C. § 1306(a)(1)
Key Terms:
Motion to Dismiss
Property of Estate
