Shapiro v. Henson, No. 11-16019 (9th Cir. 2014)Annotate this Case
After debtor filed a Chapter 7 bankruptcy petition, the trustee filed a motion for turnover under section 542(a) of the Bankruptcy Code against debtor to recover $6,155.19 of her petition-date account balance. The bankruptcy court denied the motion because debtor did not have possession or control of the funds at the time the trustee filed the motion for turnover. The district court affirmed. The court concluded that the plain language of section 542(a), pre-Code practice, and the context of other Code provisions indicated that the trustee's turnover power was not restricted to property of the estate at the time the motion is filed. Accordingly, the court reversed and remanded for further proceedings.