Taunt v. General Retirement System of Detroit (In re Wilcox)

OPINION

DAVID A. NELSON, Circuit Judge.

Although the Bankruptcy Code provides, in general, that all of a bankrupt debtor’s property interests are to be turned over to the trustee in bankruptcy for the benefit of creditors, the code creates the following exception: “A restriction on the transfer of a beneficial interest of the debtor in a trust that is enforceable under applicable nonbankruptcy law is enforceable in a case under this title.” 11 U.S.C. § 541(c)(2).

The debtor in the case at bar has a beneficial interest in assets held by the trustees of a municipal employees’ retirement plan. The…