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mining whether a debtor in bankruptcy is insolvent for purposes
of title 11, the debtor’s title 11 exempt property, which in-
cludes property exempt from the claims of creditors under appli-
cable State law, is excluded from the property he otherwise owns.
See 1978 Bankruptcy Reform Act, sec. 101(26), 11 U.S.C. sec.
101(26) (Supp. II, 1978).
When it passed the 1980 Bankruptcy Tax Act, Congress was
aware of the role that it had decided to give title 11 exempt
property in the 1978 Bankruptcy Reform Act. In particular, when
Congress enacted into the Code the insolvency exception in
section 108(a)(1)(B) and the definition of “insolvent” in section
108(d)(3), it knew that it had decided to, and did, define the
term “insolvent” in section 101(26) of the 1978 Bankruptcy Reform
Act, 11 U.S.C. sec. 101(26) (Supp. II, 1978), to exclude specifi-
11(...continued)
located for the 180 days immediately preceding the
date of the filing of the petition, or for a lon-
ger portion of such 180-day period than in any
other place; and
(B) any interest in property in which the
debtor had, immediately before the commencement of
the case, an interest as a tenant by the entirety
or joint tenant to the extent that such interest
as a tenant by the entirety or joint tenant is
exempt from process under applicable nonbankruptcy
law.
Sec. 541 of the 1978 Bankruptcy Reform Act, 92 Stat. 2594,
governs the creation and composition of the bankruptcy estate.
Sec. 522(d) of the 1978 Bankruptcy Reform Act, 92 Stat. 2586,
identifies 11 categories of property, each of which is considered
title 11 exempt property.
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