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  • Is my kid’s vehicle property of the estate?


    Is my kid’s vehicle property of the estate?

     Is my kid’s vehicle property of the estate?  Pursuant to 11 U.S.C. § 541(a), property of the estate is comprised of “all legal and equitable interests of the debtor in property as of the commencement of the case.” 11 U.S.C. § 541(a). Section 541(d) of the Bankruptcy Code provides,

    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. In re Daugherty, 261 B.R. 735 (Bankr. M.D. Fla., 2000)

        Some Courts have extended the scope of this exception and have held, under varying factual situations, that property other than real property may be held in trust for the benefit of a third party and does not become part of the bankruptcy estate. See Matter of McBarnette, 173 B.R. at 249, 250 (Bankr.N.D.Ga.1994). In re Daugherty, 261 B.R. 735 (Bankr. M.D. Fla., 2000)

    See In re Signal Hill-Liberia Avenue Ltd. P’ship, 189 B.R. 648, 651-52 (E.D. Va. 1995). See also Mid-Atlantic Supplv Inc. v. Three Rivers Aluminum Co. (In re Mid Atlantic Supplv Co.), 790 F.2d 1121 (4′ Cir. 1986) (property of the estate does not
    include property in which debtor only legal title but not an equitable interest pursuant to 541(d)).