Billionaire's Loophole Elimination Act

Summary

Billionaire's Loophole Elimination Act - Amends Federal bankruptcy law to permit the bankruptcy trustee to avoid a transfer to an asset protection trust of an interest of the debtor in property made within ten years before filing of the bankruptcy petition, if the transfer amount (or the aggregate amount of all transfers to the trust within the ten-year period) exceeds $125,000, to the extent that the debtor's beneficial interest in the trust does not become property of the estate because of a restriction enforceable under applicable nonbankruptcy law (because it is income from a spendthrift trust reasonably necessary for the support of debtor and dependents). Defines asset protection trust as one settled by the debtor, in which the debtor has a direct or indirect beneficial interest or under which the trustee may distribute property to or for the benefit of the debtor, and as to which a restriction on the voluntary or involuntary transfer of the debtor's beneficial interest in the trust is enforceable under applicable nonbankruptcy law. Excludes from the meaning of asset protection trust: (1) specified retirement funds, (2) charitable trusts; and (3) certain educational trust, funds, or accounts.

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Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 14 March 2005

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• Introduced in House (PDF)

  Introduced in House · EN · 14 March 2005

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• Introduced in House

  summary · EN · 14 March 2005

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