Roderick E. Carlson and Jeanette S. Carlson - Page 25




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          Stat. 2553, 11 U.S.C. sec. 101(26) (Supp. II, 1978).11  In deter            

               11Sec. 101(26) of the 1978 Bankruptcy Reform Act provides:             
                    (26) “insolvent” means--                                          
                    (A) with reference to an entity other than a                      
               partnership, financial condition such that the sum of                  
               such entity’s debts is greater than all of such en-                    
               tity’s property, at a fair valuation, exclusive of–-                   
                         (i) property transferred, concealed, or re-                  
                    moved with intent to hinder, delay, or defraud                    
                    such entity’s creditors; and                                      
                         (ii) property that may be exempted from prop-                
                    erty of the [bankruptcy] estate under section 522                 
                    of this title; * * *                                              
          1978 Bankruptcy Reform Act, sec. 101(26), 92 Stat. 2549, 11                 
          U.S.C. sec. 101(26) (Supp. II, 1978).  Although there have been             
          amendments to sec. 101(26) of title 11 as originally enacted that           
          were in effect for the year at issue, those amendments are not              
          material to a resolution of the issue presented here under sec.             
          108.  See 11 U.S.C. sec. 101(32) (1994).                                    
               Sec. 522(b) of the 1978 Bankruptcy Reform Act, 92 Stat.                
          2586, 11 U.S.C. sec. 522(b) (Supp. II, 1978), which allows a                
          debtor in bankruptcy to exclude exempt title 11 property from               
          property of the debtor’s bankruptcy estate, provides:                       
                    (b) Notwithstanding section 541 of this title, an                 
               individual debtor may exempt from property of the                      
               [bankruptcy] estate either–-                                           
                         (1) property that is specified under subsec-                 
                    tion (d) of this section, unless the State law                    
                    that is applicable to the debtor under paragraph                  
                    (2)(A) of this subsection specifically does not so                
                    authorize; or, in the alternative,                                
                         (2)(A) any property that is exempt under                     
                    Federal law, other than subsection (d) of this                    
                    section, or State or local law that is applicable                 
                    on the date of the filing of the petition at the                  
                    place in which the debtor’s domicile has been                     
                                                             (continued...)           





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