In re John E. DiGuilio

Summary

The bankruptcy court considered the Chapter 7 trustee’s objection to John E. DiGuilio’s claimed Ohio exemption for a SEP-IRA. The court held that the SEP-IRA was excepted from ERISA’s anti-alienation protection, constituted property of the bankruptcy estate, and was not exempt under the asserted Ohio statute; the trustee’s objection was therefore sustained.

Holdings

1. The trustee met his burden of proof by demonstrating that the debtor's SEP-IRA was excepted from ERISA's anti-alienation clause.
2. An SEP-IRA is an individual retirement account expressly excepted from ERISA's anti-alienation provision and therefore is not protected from administration by the bankruptcy trustee on that basis.
3. The SEP-IRA was property of the debtor's bankruptcy estate and could be administered by the trustee absent an applicable exemption; the trustee's objection to the claimed exemption was therefore sustained.

Questions Presented

1. Whether the debtor's SEP-IRA was property of the bankruptcy estate.
2. Whether a SEP-IRA is excepted from ERISA's anti-alienation provision under 29 U.S.C. § 1051(b)(1), making it available for administration by the bankruptcy trustee.
3. Whether Ohio's retirement-account exemption protected the SEP-IRA from administration despite ERISA's treatment of the account.

Disposition

other