Want access to unlimited case records and advanced research tools? Create your free CasePortal account now. No credit card required to register.
Try CasePortal for FreeJ. Pryor finds that the bankruptcy court properly ruled in favor of the debtor in his Chapter 7 bankruptcy petition claiming that a retirement account was exempt property of his bankruptcy estate. The creditors sought to garnish funds in the retirement account to satisfy a $1.6 million default judgment entered against the debtor in an action for damages arising from a failed condominium development. The state court's judgment authorizing the bank to remit certain funds to the state court clerk gave it only a limited right to transfer the debtor's funds and did not extinguish the debtor's interest in the funds in the account. The bank failed to exercise its right before the debtor filed for bankruptcy. The lower court's judgment also did not create a right to setoff in favor of the bank. Affirmed.