- 27 - cally title 11 exempt property of a debtor in bankruptcy, includ- ing property exempt from the claims of creditors under applicable State law, in determining whether that debtor is insolvent for purposes of the Federal bankruptcy laws. See S. Rept. 96-1035 at 24 (1980), 1980-2 C.B. 620, 632.12 However, Congress decided to, and did, adopt a different definition of the term “insolvent” in section 108(d)(3) for purposes of section 108. Unlike the definition of the term “insolvent” in section 101(26) of the 1978 Bankruptcy Act, 11 U.S.C. sec. 101(26) (Supp. II, 1978), which Congress adopted for purposes of the Federal bankruptcy laws, the definition of that term which Congress adopted for purposes of section 108 does not specifically exclude assets of a debtor that are exempt from the claims of creditors under applicable State law or any other title 11 exempt property in determining whether the debtor is insolvent. We conclude that the decision of 12The Senate report accompanying the 1980 Bankruptcy Tax Act states in pertinent part: Under bankruptcy law, the commencement of a liqui- dation or reorganization case involving an individual debtor creates an “estate” which consists of property formerly belonging to the debtor. The bankruptcy estate generally is administered by a trustee for the benefit of creditors, and it may derive its own income and incur expenditures. At the same time, the individ- ual is given a “fresh start”–-that is, wages earned by the individual after commencement of the case and after-acquired property do not become part of the bankruptcy estate, but belong to the individual, and certain property may be set aside as exempt. S. Rept. 96-1035 at 24 (1980), 1980-2 C.B. 620, 632.Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Next
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