I had a chapter 7 341 meeting yesterday, and just before our case was called, my client informed me that he receives quarterly disbursements because he is a member of the Seneca tribe. He moved here from NY last year so we are using federal exemptions. He explained to me that the moeny he receives is just for being a member of the tribe and the amount changes depending on how well certain casinos are doing (anywhere from $20-$2000). The payments are to be made as long as he is alive and he said to his knowledge, there is not a certain event that can trigger these payments to stop. I have questions on how we can protect this going forward. I have a case out of Texas that seems to say pretty definitively that this is property of the estate. but the real issue is what the liquidation value of per capita payments are. The Dallas bankruptcy trustee can’t sell them to anyone as you must be an enrolled member to get them. Then, there is no guarantee that the tribe will pay them.
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