Circuit split · bankruptcy law

Whether the restriction in 11 U.S.C. § 524(e) precludes a bankruptcy court from discharging or releasing the liabilities of non-debtor third parties

1 federal appellate case on this question, each acknowledging the disagreement in its own words.

Lowenschuss v. Selnick171 F3D 673
Ninth Circuit Court of Appeals · March 17, 1999
“*683 We recognize that our decision creates a split among the circuits that have addressed the issue of whether the “restriction” to which 11 U.” — Acknowledges a circuit split
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The provision at issue

11 U.S.C. § 541 — Property of the estate

“(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 …”

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The other side of the split

Decisions the acknowledging court(s) named as the opposing or joined side, quoted in the acknowledging opinion's own words.

On the other side · 3d Cir.In re Yuhas104 F.3d 612
“The Yuhas court reasoned that “[i]n Patterson, the Court said that a debtor may exclude a trust from the bankruptcy estate if the trust contains an appropriate restriction; the court did not say that a debtor may exclude a trust only if it, as opposed to a statute, contains such a restriction.” 104 F.3d at 616 n.” — Lowenschuss v. Selnick, acknowledging the split
On the other side · 11th Cir.In re Meehan102 F.3d 1209
“Similarly, the Meehan court reasoned that “[njothing in the language of [ 11 U.S.C.” — Lowenschuss v. Selnick, acknowledging the split
Discussed · Bankr. M.D. Pa.In re Johnson191 B.R. 75
“See In re Yuhas, 104 F.3d 612 (3d Cir.1997) (finding section 25:2-l(b) of the New Jersey Statutes Annotated constitutes restriction on transfer of debtor’s interest in IRA that is enforceable under applicable nonbankruptcy law); In re Meehan, 102 F.3d 1209 (11th Cir.1997) (finding section 18-4-22(a) of the Official Code of Georgia Annotated constitutes restriction on transfer of debtor’s interest in IRA that is enforceable under applicable nonbankruptcy law); see also In re Johnson, 191 B.R.” — Lowenschuss v. Selnick, acknowledging the split

What the split turns on

Anchor precedents:: Patterson504 U.S. 760
Statutes:: 11 U.S.C. § 541(c)(2) ·; 29 U.S.C. § 1132(a)(3), (5)

Cases are grouped by the legal question they announce a split on, classified from the court's own acknowledgment sentence. Verified acknowledgments only. Counter-side decisions are extracted from the acknowledging opinions' own text and linked only when the citation resolves in this corpus. See all circuit splits.