Opinion ID: 2031540
Heading Depth: 1
Heading Rank: 2

Heading: Applicability of 11 U.S.C. Section 541(a)(7).

Text: In ascribing ownership of the disputed cause of action to the Collinses' bankruptcy trustee, the district court appeared to place some reliance on 11 U.S.C. section 541(a)(7). We conclude that such reliance was misplaced. That statute indicates that, in addition to acquiring all legal or equitable interest of the debtor in property as of the commencement of the case, the trustee also acquires any interests in property that the estate acquires after the commencement of the case. The wording of this statute suggests that it relates to assets which the trustee acquires in the process of administering the bankruptcy estate. See 4 Collier on Bankruptcy ¶ 541.20 (15th ed. 1987). As such, we do not believe this statute is designed to defeat property interests which, under applicable state law, vest in the debtors after they have attained postfiling fresh start status. The judgment is affirmed as to the claims of those defendants other than defendant Ford. The judgment is also affirmed as to the claims against defendant Ford embraced by subparagraphs a, b, c, d, and f of plaintiffs' claims against defendant Ford. The judgment is reversed as to the claim against him based upon the filing of the bankruptcy petition. The case is remanded to the district court for further proceedings on that claim not inconsistent with this opinion. AFFIRMED IN PART, REVERSED IN PART AND REMANDED.