In re Fixel
Nov 27, 2002OUTCOME: Trustee objection overruled. Exemption of the debtors was allowed.
Debtors filed their bankruptcy petition for relief under Chapter 7 of the Bankruptcy Code. Two of the assets claimed on Schedule C were Individual Retirement Accounts (hereinafter "IRAs"). The Debtors ... claimed exemptions in the IRAs' entire amount. The Chapter 7 Trustee objects to the Debtors' claim of exemption while asserting that the Sixth Circuit's recently unpublished decision in Lampkins v. Golden, 2002 WL 74449 (6th Cir. Mich.2002) held ERISA [29 U.S.C. § 1001 et seq] excepts the subject IRA from exemption and, further, that it is not protected from garnishment. The Debtors contend in response that Lampkins is not controlling for three reasons: (1) the IRA exemption is not preempted by ERISA in bankruptcy cases; (2) the IRA exemption is not preempted by ERISA as it does not relate to an employee pension benefit plan, and (3) the Sixth Circuit's unpublished Lampkins decision is not binding on the Bankruptcy Court.
