Justia Bankruptcy Opinion Summaries

The Supreme Court answered a question certified to it by the United States Bankruptcy Court for the District Court of Rhode Island by holding that R.I. Gen. Laws 9-26-4(11) permits a debtor to claim an exemption for an inherited Individual Retirement Annuity (IRA).Lynette Kapsinow filed a Chapter 7 bankruptcy petition seeking, under Rhode Island law, to exempt an inherited IRA pursuant to section 9-26-4(11). The inherited IRA was inherited by Kapsinow from her late mother. The bankruptcy court certified to the Supreme Court the question about the availability of an exemption in bankruptcy with respect to the inherited IRA. The Supreme Court answered that a debtor may claim an exemption in an inherited IRA, including one inherited from a non-spouse, pursuant to section 9-267-4(11). View "In re Kapsinow" on Justia Law