Exclusions from Bankruptcy Estate: Education Savings Accounts & Employee Benefit Plans
Published: 2008 | Author: William J. Tucker

This paper discusses exclusions from the bankruptcy estate for education savings accounts and employee benefit plans under §§ 541(b)(5) – (7) of the Bankruptcy Code.


One of the few new benefits afforded to bankruptcy debtors in the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) was the addition of an exclusion from the bankruptcy estate of certain education savings accounts under §§ 541(b)(5) and (6), and employee benefit plans under  § 541(b)(7).  Section 541(b)(5) excludes education IRAs from the bankruptcy estate, and § 541(b)(6) excludes qualified tuition programs.  This paper discusses the nuances of these Code sections in detail, and also examines relevant post-BAPCPA issues.

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