Tenth Circuit declares “no recharacterization without justification”

Recharacterization: an overview

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Tenth Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP
Same dollars, different treatment: Tenth Circuit holds that distributions from a retirement plan do not fall within the Colorado state law exemption statute

Although almost all of an individual debtor’s assets become property of the estate upon a bankruptcy filing, certain exceptions exist to the rule at both the federal and state level.  In some jurisdictions, funds held for a debtor in retirement plans are exempt assets.  An open question, however, is whether payments distributed from such plans prior to the petition date are also exempt assets.  The United States Court of Appeals for the Tenth Circuit recently held in 

Filed under:
USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Debtor, United States bankruptcy court, Tenth Circuit
Location:
USA
Firm:
Weil Gotshal & Manges LLP