1/19/2021 11 U.S. Code § 541 - Property of the estate | U.S.
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11 U.S. Code § 541 - Property of the estate
U.S. Code Notes
(a) The commencement of a case under section 301, 302, or 303 of this
title creates an estate. Such estate is comprised of all the following
property, wherever located and by whomever held:
(1) Except as provided in subsections (b) and (c)(2) of this section,
all legal or equitable interests of the debtor in property as of the
commencement of the case.
(2) All interests of the debtor and the debtor’s spouse in community
property as of the commencement of the case that is—
(A) under the sole, equal, or joint management and control of
the debtor; or
(B) liable for an allowable claim against the debtor, or for both an
allowable claim against the debtor and an allowable claim against
the debtor’s spouse, to the extent that such interest is so liable.
(3) Any interest in property that the trustee recovers under section
329(b), 363(n), 543, 550, 553, or 723 of this title.
(4) Any interest in property preserved for the benefit of or ordered
transferred to the estate under section 510(c) or 551 of this title.
(5) Any interest in property that would have been property of the
estate if such interest had been an interest of the debtor on the date
of the filing of the petition, and that the debtor acquires or becomes
entitled to acquire within 180 days after such date—
(A) by bequest, devise, or inheritance;
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(B) as a result of a property settlement agreement with the
debtor’s spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit
plan.
(6) Proceeds, product, offspring, rents, or profits of or from property
of the estate, except such as are earnings from services performed
by an individual debtor after the commencement of the case.
(7) Any interest in property that the estate acquires after the
commencement of the case.
(b) Property of the estate does not include—
(1) any power that the debtor may exercise solely for the benefit of
an entity other than the debtor;
(2) any interest of the debtor as a lessee under a lease of
nonresidential real property that has terminated at the expiration of
the stated term of such lease before the commencement of the case
under this title, and ceases to include any interest of the debtor as a
lessee under a lease of nonresidential real property that has
terminated at the expiration of the stated term of such lease during
the case;
(3) any eligibility of the debtor to participate in programs authorized
under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.; 42
U.S.C. 2751 et seq.),[1] or any accreditation status or State licensure
of the debtor as an educational institution;
(4) any interest of the debtor in liquid or gaseous hydrocarbons to
the extent that—
(A)
(i) the debtor has transferred or has agreed to transfer such
interest pursuant to a farmout agreement or any written
agreement directly related to a farmout agreement; and
(ii) but for the operation of this paragraph, the estate could
include the interest referred to in clause (i) only by virtue of
section 365 or 544(a)(3) of this title; or
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(B)
(i) the debtor has transferred such interest pursuant to a
written conveyance of a production payment to an entity that
does not participate in the operation of the property from
which such production payment is transferred; and
(ii) but for the operation of this paragraph, the estate could
include the interest referred to in clause (i) only by virtue of
section 365 or 542 of this title;
(5) funds placed in an education individual retirement account (as
defined in section 530(b)(1) of the Internal Revenue Code of 1986)
not later than 365 days before the date of the filing of the petition in
a case under this title, but—
(A) only if the designated beneficiary of such account was a child,
stepchild, grandchild, or stepgrandchild of the debtor for the
taxable year for which funds were placed in such account;
(B) only to the extent that such funds—
(i) are not pledged or promised to any entity in connection
with any extension of credit; and
(ii) are not excess contributions (as described in section
4973(e) of the Internal Revenue Code of 1986); and
(C) in the case of funds placed in all such accounts having the
same designated beneficiary not earlier than 720 days nor later
than 365 days before such date, only so much of such funds as
does not exceed $5,000; [2]
(6) funds used to purchase a tuition credit or certificate or
contributed to an account in accordance with section 529(b)(1)(A) of
the Internal Revenue Code of 1986 under a qualified State tuition
program (as defined in section 529(b)(1) of such Code) not later
than 365 days before the date of the filing of the petition in a case
under this title, but—
(A) only if the designated beneficiary of the amounts paid or
contributed to such tuition program was a child, stepchild,
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grandchild, or stepgrandchild of the debtor for the taxable year
for which funds were paid or contributed;
(B) with respect to the aggregate amount paid or contributed to
such program having the same designated beneficiary, only so
much of such amount as does not exceed the total contributions
permitted under section 529(b)(6) of such Code with respect to
such beneficiary, as adjusted beginning on the date of the filing of
the petition in a case under this title by the annual increase or
decrease (rounded to the nearest tenth of 1 percent) in the
education expenditure category of the Consumer Price Index
prepared by the Department of Labor; and
(C) in the case of funds paid or contributed to such program
having the same designated beneficiary not earlier than 720 days
nor later than 365 days before such date, only so much of such
funds as does not exceed $5,000; 2
(7) any amount—
(A) withheld by an employer from the wages of employees for
payment as contributions—
(i) to—
(I) an employee benefit plan that is subject to title I of the
Employee Retirement Income Security Act of 1974 or
under an employee benefit plan which is a governmental
plan under section 414(d) of the Internal Revenue Code of
1986;
(II) a deferred compensation plan under section 457 of
the Internal Revenue Code of 1986; or
(III) a tax-deferred annuity under section 403(b) of the
Internal Revenue Code of 1986;
except that such amount under this subparagraph shall not
constitute disposable income as defined in section 1325(b)
(2); or
(ii) to a health insurance plan regulated by State law whether
or not subject to such title; or
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(B) received by an employer from employees for payment as
contributions—
(i) to—
(I) an employee benefit plan that is subject to title I of the
Employee Retirement Income Security Act of 1974 or
under an employee benefit plan which is a governmental
plan under section 414(d) of the Internal Revenue Code of
1986;
(II) a deferred compensation plan under section 457 of
the Internal Revenue Code of 1986; or
(III) a tax-deferred annuity under section 403(b) of the
Internal Revenue Code of 1986;
except that such amount under this subparagraph shall not
constitute disposable income, as defined in section 1325(b)
(2); or
(ii) to a health insurance plan regulated by State law whether
or not subject to such title;
(8) subject to subchapter III of chapter 5, any interest of the debtor
in property where the debtor pledged or sold tangible personal
property (other than securities or written or printed evidences of
indebtedness or title) as collateral for a loan or advance of money
given by a person licensed under law to make such loans or
advances, where—
(A) the tangible personal property is in the possession of the
pledgee or transferee;
(B) the debtor has no obligation to repay the money, redeem the
collateral, or buy back the property at a stipulated price; and
(C) neither the debtor nor the trustee have exercised any right to
redeem provided under the contract or State law, in a timely
manner as provided under State law and section 108(b);
(9) any interest in cash or cash equivalents that constitute proceeds
of a sale by the debtor of a money order that is made—
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(A) on or after the date that is 14 days prior to the date on which
the petition is filed; and
(B) under an agreement with a money order issuer that prohibits
the commingling of such proceeds with property of the debtor
(notwithstanding that, contrary to the agreement, the proceeds
may have been commingled with property of the debtor),
unless the money order issuer had not taken action, prior to the
filing of the petition, to require compliance with the prohibition;
or
(10) funds placed in an account of a qualified ABLE program (as
defined in section 529A(b) of the Internal Revenue Code of 1986)
not later than 365 days before the date of the filing of the petition in
a case under this title, but—
(A) only if the designated beneficiary of such account was a child,
stepchild, grandchild, or stepgrandchild of the debtor for the
taxable year for which funds were placed in such account;
(B) only to the extent that such funds—
(i) are not pledged or promised to any entity in connection
with any extension of credit; and
(ii) are not excess contributions (as described in section
4973(h) of the Internal Revenue Code of 1986); and
(C) in the case of funds placed in all such accounts having the
same designated beneficiary not earlier than 720 days nor later
than 365 days before such date, only so much of such funds as
does not exceed $6,225.2
Paragraph (4) shall not be construed to exclude from the estate any
consideration the debtor retains, receives, or is entitled to receive
for transferring an interest in liquid or gaseous hydrocarbons
pursuant to a farmout agreement.
(c)
(1) Except as provided in paragraph (2) of this subsection, an
interest of the debtor in property becomes property of the estate
under subsection (a)(1), (a)(2), or (a)(5) of this section
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notwithstanding any provision in an agreement, transfer instrument,
or applicable nonbankruptcy law—
(A) that restricts or conditions transfer of such interest by the
debtor; or
(B) that is conditioned on the insolvency or financial condition of
the debtor, on the commencement of a case under this title, or
on the appointment of or taking possession by a trustee in a case
under this title or a custodian before such commencement, and
that effects or gives an option to effect a forfeiture, modification,
or termination of the debtor’s interest in property.
(2) A restriction on the transfer of a beneficial interest of the debtor
in a trust that is enforceable under applicable nonbankruptcy law is
enforceable in a case under this title.
(d) Property in which the debtor holds, as of the commencement of the
case, only legal title and not an equitable interest, such as a mortgage
secured by real property, or an interest in such a mortgage, sold by the
debtor but as to which the debtor retains legal title to service or
supervise the servicing of such mortgage or interest, becomes property
of the estate under subsection (a)(1) or (2) of this section only to the
extent of the debtor’s legal title to such property, but not to the extent
of any equitable interest in such property that the debtor does not hold.
(e) In determining whether any of the relationships specified in
paragraph (5)(A) or (6)(A) of subsection (b) exists, a legally adopted
child of an individual (and a child who is a member of an individual’s
household, if placed with such individual by an authorized placement
agency for legal adoption by such individual), or a foster child of an
individual (if such child has as the child’s principal place of abode the
home of the debtor and is a member of the debtor’s household) shall be
treated as a child of such individual by blood.
(f) Notwithstanding any other provision of this title, property that is
held by a debtor that is a corporation described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from tax under section
501(a) of such Code may be transferred to an entity that is not such a
corporation, but only under the same conditions as would apply if the
debtor had not filed a case under this title.
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(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2594; Pub. L. 98–353, title III,
§§ 363(a), 456, July 10, 1984, 98 Stat. 363, 376; Pub. L. 101–508, title III,
§ 3007(a)(2), Nov. 5, 1990, 104 Stat. 1388–28; Pub. L. 102–486, title XXX,
§ 3017(b), Oct. 24, 1992, 106 Stat. 3130; Pub. L. 103–394, title II,
§§ 208(b), 223, Oct. 22, 1994, 108 Stat. 4124, 4129; Pub. L. 109–8, title
II, § 225(a), title III, § 323, title XII, §§ 1212, 1221(c), 1230, Apr. 20,
2005, 119 Stat. 65, 97, 194, 196, 201; Pub. L. 111–327, § 2(a)(22), Dec.
22, 2010, 124 Stat. 3560; Pub. L. 113–295, div. B, title I, § 104(a), Dec.
19, 2014, 128 Stat. 4063.)
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