Opinion
Case No. 10-20047.
June 23, 2010
Opinion and Order
The debtor filed a voluntary chapter 13 petition on January 15, 2010. On her Schedule C filed that date, the debtor sought to exempt (i) $1000 in a Northeast Credit Union checking account, and (ii) $500 in a Bank of America checking account. As alternative grounds for these claimed exemptions, the debtor cited 14 M.R.S. § 4422(13)(A)-(C) and 38 U.S.C. § 5301(a).
Via 22 U.S.C. § 4060, which provides for the assignment of Foreign Service Retirement and Disability benefits to spouses.
On February 18, 2010, the chapter 13 trustee objected to these exemptions, asserting that neither the Maine nor the federal statute is applicable to cash once it has been received by a debtor. The debtor opposed the trustee's objection. Following a hearing on June 23, 2010, I took the matter under submission.
I have reviewed the applicable law, and hereby conclude as follows:
(A) As to the debtor's exemptions claimed pursuant to Maine law, the trustee's objection is sustained. The Maine statute, by its express terms, applies only to "[t]he debtor's right to receive" veterans' and/or disability benefits. See M.R.S. § 4422(13)(A)-(C). Therefore, cash the debtor has in hand cannot be exempted.
(B) As to the exemptions claimed pursuant to 38 U.S.C. § 5301(a), the trustee's objection is overruled. The statute provides that:
Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be except from . . . the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.
Thus, to the extent that the funds the debtor claims as exempt are traceable to sources from which the debtor would be entitled to exempt payments pursuant to 38 U.S.C. § 5301(a)(1), those funds themselves are also exempt. See In re Cook, 406 B.R. 770, 773-74 (Bankr. S.D. Ohio 2009), citing Porter v. Aetna Cas. Sur. Co., 370 U.S. 159 (1962) (discussing exemption of benefits under 38 U.S.C. § 3101(a), later re-codified as 38 U.S.C. § 5301(a)).
It is so ordered.
Notice Recipients
Recipients of Notice of Electronic Filing: Recipients submitted to the BNC (Bankruptcy Noticing Center):
District/Off: 0100-2 User: rparker Date Created: 6/23/2010 Case: 10-20047 Form ID: pdf900 Total: 77 ust Office of U.S. Trustee ustpregion01.po.ecf@usdoj.gov tr Peter C. Fessenden jawill@chap13.com aty F. Bruce Sleeper, Esq. bankruptcy@jbgh.com aty Hilary B. Bonial, Esq. hbb@bkcylaw.com aty J Scott Logan scott@southernmainebankruptcy.com aty Peter D. Klein, Esq. pklein@ddlaw.com TOTAL: 6 db Mary Ann Hyder-Ward P.O. Box 15109602 Sioux Falls, SD 57186 cr USAA P.O. Box 829009 Dallas, TX 75382 cr Federal National Mortgage Association c/o GMAC Mortgage, LLC Attn: Bankruptcy Dept. 1100 Virginia Dr. Fort Washington, PA 19034 smg State of Maine Bureau of Revenue Services Bankruptcy Unit P.O. Box 9101 Augusta, ME 04333-9113 1562399 AMERICAN INFOSOURCE LP AS AGENT FOR WORLD FINANCIAL CAPITAL BANK PO Box 248872 Oklahoma City, OK 73124-8872 1564433 AMERICAN INFOSOURCE LP AS AGENT FOR WORLD FINANCIAL NETWORK NATIONAL BANK AS Express PO Box 248872 Oklahoma City, OK 73124-8872 1560599 AT P.O. Box 721440 Norman, OK 73070-8110 1560597 Absolute Credit, LLC 175 Exchange Street Bangor, ME 04401 1560598 Anthem Blue Cross 1351 William Howard Taft Cincinnati, OH 45206 1560601 Bank of America P.O. Box 15019 Wilmington, DE 19886 1560600 Bank of America attn: Bradley Cleek P.O. Box 26078 Greensboro, NC 27420 1566124 CAPITAL ONE BANK (USA), N.A. BY AMERICAN INFOSOURCE LP AS AGENT PO Box 71083 Charlotte, NC 28272-1083 1560602 Capitol One P.O. Box 30285 Salt Lake City, UT 84130-0285 1560603 Cardmember Services P.O. Box 15548 Wilmington, DE 19886 1560604 Cardmember Services P.O. Box 94014 Palatine, IL 60094 1569760 Chase Bank USA NA PO BOX 15145 Wilmington, DE 19850-5145 1560607 Citi Cards P.O. Box 6191 Sioux Falls, SD 57117-6191 1560606 Citi Cards P.O. Box 6500 Sioux Falls, SD 57117 1560605 Citi Cards P.O. Box 688903 Des Moines, IA 50368-8903 1560608 CitiCorp Collection Services P.O. Box 140310 Toledo, OH 43614 1567054 Citibank NA as trustee for The Student Loan Corp On behalf of United Student Aid Funds Sallie Mae Guarantee Services, Inc. Attn Bankruptcy Litigation Unit e3149 Po Box 9430 Wilkes-Barre, PA 18773-9430 1560609 Collins Financial Services / Paragon Way P.O. Box 42829 Austin, TX 78704 1560610 Countrywide / BAC P.O. Box 650070 Dallas, TX 75265-0070 1560611 Credit One Bank P.O. Box 60500 City Of Industry, CA 91716 1564679 DEPARTMENT STORES NATIONAL BANK/MACY'S NCO FINANCIAL SYSTEMS, INC. PO BOX 4275 NORCROSS, GA 30091 1560612 Dell Credit P.O. Box 6403 Carol Stream, IL 60197-6403 1562723 Dell Financial Services L.L.C. c/o Resurgent Capital Services PO Box 10390 Greenville, SC 29603-0390 1564681 FDS BANK/MACYS NCO FINANCIAL SYSTEMS, INC. PO BOX 4275 NORCROSS, GA 30091 1564680 FDS BANK/VISA NCO FINANCIAL SYSTEMS, INC. PO BOX 4275 NORCROSS, GA 30091 1588816 FIA Card Services NA aka Bank of America By PRA Receivables Management, LLC PO Box 12907 Norfolk VA 23541 1586971 FedLoan Servicing P.O. Box 69184 Harrisburg PA 17106-9184 1565967 Federal National Mortgage Association c/o GMAC Mortgage, LLC Attn: Bankruptcy Dept. 1100 Virginia Dr. Fort Washington, PA 19034 1560613 GEMB / JC Penney P.O. Box 530945 Atlanta, GA 30353-0945 1560614 GEMB / Macy's P.O. Box 689195 Des Moines, IA 50368 1560615 GMAC Mortgage P.O. Box 4622 Waterloo, IA 50704-4622 1560616 GMAC Mortgage P.O. Box 9001719 Louisville, KY 40290-1719 1565405 GMAC Mortgage Corporation dba ditech.com c/o GMAC Mortgage, LLC Attn: Bankruptcy Department 1100 Virginia Drive Fort Washington, PA 19034 1610300 Global Acceptance Credit Company, LP PO Box 172800 Arlington, TX 76003-2800 1560618 HSBC P.O. Box 978 Wood Dale, IL 60191-0978 1589411 HSBC Bank Nevada, N.A. By PRA Receivables Management, LLC PO Box 12907 Norfolk VA 23541 1560619 HSN P.O. Box 659707 San Antonio, TX 78265-9707 1560617 Home Depot P.O. Box 6028 The Lakes, NV 88901 1560620 LTD Financial Services, LP 7322 Southwest Freeway, Ste. 1600 Houston, TX 77074 1586527 LVNV Funding LLC Resurgent Capital Services PO Box 10587 Greenville, SC 29603-0587 1560621 LVNV Funding, LLV P.O. Box 10584 Greenville, SC 29603-0584 1560623 NCO Financial Systems, Inc. P.O. Box 182965 Columbus, OH 43218-2965 1560622 National City Card P.O. Box 2349 KA 16F5 Kalamazoo, MI 49003 1560624 Northeast Credit Union P.O. Box 1240 Portsmouth, NH 03802 1560706 Office of U.S. Attorney 100 Middle Street East Tower, 6th Floor Portland ME 04101 1560625 P Gagnon Son 215 Main Street South Berwick, ME 03908 1566052 PNC Bank P.O. Box 94982 Cleveland, OH 44101 1572877 PRA Receivables Management, LLC As Agent Of Portfolio Recovery Assocs. POB 41067 NORFOLK VA 23541 1599784 Recovery Management Systems Corporation For GE Money Bank dba QCARD 25 SE 2nd Ave Ste 1120 Miami FL 33131 1560626 Redline Recovery Services, LLC 11675 Rainwater Drive, Ste. 350 Alpharetta, GA 30009-8693 1560627 Reward Zone Master Card P.O. Box 5222 Carol Stream, IL 60197 1560628 Sears Credit Cards P.O. Box 688956 Des Moines, IA 50368 1560629 South Berwick Sewer Dept 180 Main Street South Berwick, ME 03908 1560630 Sprint P.O. Box 660075 Dallas, TX 75266 1560631 The Home Depot Credit Services P.O. Box 6405 Sioux Falls, SD 57117 1560632 Town of Kittery Maine P.O. Box 1491 Brattleboro, VT 05302 1560634 US Department of Education P.O. Box 530260 Atlanta, GA 30353-0260 1560635 USAA 10750 McDermott Fwy San Antonio, TX 78288 1560636 USAA P.O. Box 14050 Las Vegas, NV 89114 1564786 USAA PO Box 829009 Dallas, TX 75382 1568371 USAA PO Box 829009 Dallas, TX 75382-9009 1568398 USAA PO Box 829009 Dallas, TX 75382-9009 1568399 USAA PO Box 829009 Dallas, TX 75382-9009 1562036 USAA FEDERAL SAVINGS BANK C O WEINSTEIN AND RILEY, PS 2001 WESTERN AVENUE, STE 400 SEATTLE, WA 98121 1560637 USAA Mortgage 9800 Fredericksburg Road San Antonio, TX 78288 1560633 United Collection Bureau P.O. Box 1418 Maumee, OH 43537 1560638 WFNNB KingSize P.O. Box 659728 San Antonio, TX 78265-9728 TOTAL: 71