Title to Accrued Vacation Pay: The Bankrupt's or the Trustee's in Bankruptcy
![handle is hein.journals/hastlj22 and id is 866 raw text is: TITLE TO ACCRUED VACATION PAY: THE
BANKRUPT'S OR THE TRUSTEE'S
IN BANKRUPTCY?
The two fundamental purposes of the Bankruptcy Act' are to
liquidate and distribute assets of the debtor in a manner which is
equitable to the debtor, to the creditor, and among the creditors;2
and to leave the bankrupt free after the date of his petition to accu-
mulate new wealth in the future.'3 To carry out these objectives the
act specifies the date of bankruptcy as a general time-pivotal or point
of cleavage throughout its provisions. Section 70a provides that as of
the date of the filing of the petition, the trustee of the estate of a bank-
rupt shall be vested by operation of law with the title of the bankrupt
to all classes of property enumerated in its subdivisions, but that the
bankrupt shall be free of creditors' claims to property acquired there-
after.4 Of the eight separate classes of properties, interests or rights
which may come into the estate in bankruptcy as assets and thereby
vest in the trustee, the most general classification is that created by the
fifth clause.5
This clause, subject to provisos as to certain rights of action for
wrongs to the person and as to life insurance policies, vests the trustee
with the title of the bankrupt as of the date of the filing of the petition
in bankruptcy to
property, including rights of action, which prior to the filing of
the petition [the bankrupt] could by any means have transferred
or which might have been levied upon and sold under judicial
process against him, or otherwise seized, impounded or seques-
tered . 6
By fixing a definite time when the estate of the bankrupt is con-
sidered subject to the act-and thereby delineating the rights and status
of those claiming against the estate-the two underlying themes of
equality of distribution and rehabilitation of the debtor have been con-
sistently maintained. But no matter how suitable the date of bank-
ruptcy might be as a means of maintaining and harmonizing these two
goals, there will still be conflicting claims to specific forms of property
1. 11 U.S.C. §§ 1-1103 (1964).
2. 3 J. COLLIER, COLLIER ON BANKRUPTCY 1 60.01 (14th ed. J. Moore & L
King, 1962) [hereinafter cited as COLLIER].
3. Segal v. Rochelle, 382 U.S. 375, 379 (1966).
4. Bankruptcy Act § 70a, 11 U.S.C. § 110(a) (1964); 4A COLLIER 70.07.
5. 3 H. REMINGTON, BANKRUPTCY §§ 1177-269 (J. Henderson ed. 1957).
6. Bankruptcy Act § 70a(5), 11 U.S.C. § I10(a)(5) (1964).](ViewImageLocal?handle=hein.journals/hastlj22&div=47&collection=&method=preview&ext=.png&size=3)
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Title to Accrued Vacation Pay: The Bankrupt's or the Trustee's in Bankruptcy
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