Ryen v. Terry (In Re Terry)
The trustee, Louis A. Ryen, initiated an adversary proceeding against debtor Elizabeth A. Terry to compel the turnover of a $51,000 workers' compensation settlement received post-petition for a pre-petition industrial accident. The debtor had attempted to exempt these funds improperly. The settlement proceeds were held in part as treasury bills by the debtor and in part by her mother, Bertha Terry, as a bailment. The court ruled that these funds constituted property of the bankruptcy estate under 11 U.S.C. § 541(a) and were beneficial to the estate. Consequently, the court granted the trustee's request for immediate turnover of the funds.