When a state law that precludes the application of the debtor’s state-created homestead exemption conflicts with federal bankruptcy law, state law must yield. In re Smither, No. 14-40607 (Bankr. D. Mass. Nov. 30, 2015). [Read more…] about Code Preempts State Exemption Exception
Law v. Siegel (In re Law), No. 12-5196 (SCt)
Type: Amicus
Date: September 3, 2013
Description: Whether trustee has the power to impose a special charge on the debtor by taking away homestead exemption for failing to comply with the trustee’s demands for information during discovery.
Result: Debtor won, 571 U.S. ___ (March 4, 2014)
Running v. Miller (In re Miller), No. 13-3682 (8th Cir.)
Type: Amicus
Date: March 27, 2014
Description: Whether Individual Retirement Annuity created by lump sum rollover contribution from exempt Individual Retirement Account is exempt under section 522(b)(3)(C).
Result: Judgment affirmed, debtor won. February 13, 2015
Miller 8th Cir NACBA amicus
Miller 8th Cir Opinion
Homestead Exemption May Not Be Denied Based on Bad Faith, but . . .
Absent a statutory basis for doing so, a bankruptcy court may not deny a debtor’s homestead exemption based on bad faith or prejudice to creditors. Elliott v. Weil (In re Elliott), No. 14-1050, 14-1059 (consolidated) (B.A.P. 9th Cir. Dec. 10, 2014). [Read more…] about Homestead Exemption May Not Be Denied Based on Bad Faith, but . . .
Clark v. Rameker, No. 13-299 (USSCt.)
Type: Amicus
Date: January 17, 2014
Description: Inherited IRA exemption
Result: Judgment Affirmed July 14, 2014
Supreme Court to Decide Inherited IRA Exemption Issue
In other Supreme Court news, the Court granted certiorari in the case of Clark v. Rameker (In re Clark), No. 13-299. In that case, the Seventh Circuit created a split in the circuits when it held that a debtor may not exempt her inherited IRA in bankruptcy. In re Clark, No. 12-1241 & 12-1255 (April 23, 2013). The Fifth Circuit had reached the opposite conclusion in Chilton v. Moser, 674 F.3d 486 (5th Cir. 2012). NCBRC will file an amicus brief on behalf of the NACBA membership in this important case.
Annuity Purchased with Tax-Exempt Rollover Funds Exempt in Bankruptcy
The BAP for the Eighth Circuit found that, under section 522(b)(3)(C), the debtor could exempt an Annuity purchased with funds rolled over from a tax-exempt IRA. In re Miller, No. 13-6026 (Nov. 4, 2013). [Read more…] about Annuity Purchased with Tax-Exempt Rollover Funds Exempt in Bankruptcy
State Exemption Limited to Amount of Equity
The BAP for the Eighth Circuit found that, under the relevant Iowa exemption statute, the debtor could not exempt a vehicle in which she had no equity. In re Goben, No. 13-6039 (Sept. 23, 2013). [Read more…] about State Exemption Limited to Amount of Equity
60-Day Rollover Does Not Disqualify IRA Funds from Exemption
The Fourth Circuit is poised to review the bankruptcy court’s decision that a debtor may rely on the 60-day rollover rule to withdraw funds from his IRA, use them for living expenses, and redeposit them within 60 days without their losing their exempt status in bankruptcy. In re Rudd, 2013 WL 2684541 (Bankr. E.D. N.C., June 12, 2013). [Read more…] about 60-Day Rollover Does Not Disqualify IRA Funds from Exemption
State Exception to Homestead Exemption Pre-empted
The Bankruptcy Appellate Panel for the Eighth Circuit found that a Missouri exception to its homestead exemption was preempted by section 522(c) of the federal exemption scheme. In re Moore, 495 B.R. 1 (B.A.P. 8th Cir. July 8, 2013). [Read more…] about State Exception to Homestead Exemption Pre-empted