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IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA In re FREDERICK LOPEZ,                                                         No. 94-12986        Debtor. ___________________________/ Memorandum of Decision      The debtor has scheduled as an asset in this Chapter 7 case $4,700.00 in accrued vacation pay, and has claimed the entire amount exempt pursuant to sections 706.050 and 704.070 of the California Code of Civil Procedure. He also claimed that the vacation pay was "not property of the estate," citing Lines v. Frederick, 400 U.S. 18 (1970). Now before the court is the trustee's objection to the claim of exemption.      Whether or not an asset is property of the estate is an entirely different issue from whether the property is exempt. Nonetheless, since the parties have mixed the issues the court will decide them both.      The legislative history makes it clear that Congress specifically intended to overrule Lines when it enacted the Bankruptcy Code. See Matter of Nichols, 4 B.R. 711, 714 (1980). The accrued vacation pay is property of the estate.      The debtor has exempted all of the vacation pay and the trustee has objected to the entire claim; neither position seems to have merit. Both of the statutes relied upon by the debtor limit his exempt amount to 75% of the total, not the entire amount. Vacation pay is subject to the same exemption percentage as ordinary pay. Matter of Brissette, 561 F.2d 779, 786 (9th Cir. 1977); Bernstein v. Richardson, 34 B.R. 611, 612 (Bkrtcy.D.Colo. 1983).      For the foregoing reasons, the objection to the claim of exemption shall be sustained in part. The debtor may keep $3,525.00 and shall turn over $1,175.00 to the trustee.      Counsel for the trustee shall submit an appropriate form of order.
Dated: June 4, 1995                                                                                                                _______________________                                                                                                                                                          Alan Jaroslovsky                                                                                                                                                          U.S. Bankruptcy