The Bankruptcy Reform Act of 1994 amended section 525 to provide that a governmental unit that operates a student grant or loan program and a person or entity that makes federally insured or guaranteed student loans cannot deny an educational benefit based upon the applicant's prior filing or discharge. L. No. 103-394, tit. Cases a. Asset Forfeitures . Debtor's right to claim the property at the post-seizure hearing mandated by the statute is property of the estate. Were the claim not an asset of the estate, and if the debtor prevailed at the post-seizure hearing, the debtor would receive a windfall at the expense of his creditors.
Forfeiture is at least in part an action against property.
Forfeiture is intended neither to protect health or safety nor to stop or prevent fraud, environmental or consumer protection, safety, or similar powers. Clear congressional intent to relegate these claims to a position behind that of unsecured creditors so that they are protected from debtor's wrongdoing. If state court determines that the currency was not forfeitable, funds would be turned over to the trustee. In turnover proceeding, rejects Ryan II , finding that estate's interest in the forfeited property is only the debtor's right to claim the money in a forfeiture hearing, and that turnover should be ordered only to the extent, if any, to which currency is found not to be forfeitable. Excepted, so long as subject to criminal statutes and not simply intended as means to collect debt.