The Seventh Circuit found that Illinois’ personal property exemption statute, which provides an exemption for a bible, extended to the debtor’s first edition Book of Mormon notwithstanding its unusually high monetary value. In re Robinson, 14-3585 (7th Cir. Feb. 4, 2016). [Read more…] about $10,000 Book of Mormon Properly Exempted
Code Preempts State Exemption Exception
When a state law that precludes 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
Debtor Equitably Estopped from Claiming Homestead Exemption
The debtor’s unfair manipulation of her state homestead exemption claim justified denial of the claim under principles of equitable estoppel. Lua v. Miller (In re Lua), No. 15-04026 (C.D. Cal. Nov. 10, 2015). [Read more…] about Debtor Equitably Estopped from Claiming Homestead Exemption
IRA Exemption Lost Due to Prohibited Transaction
The debtors’ use of funds in the husband’s self-directed IRA to fund the purchase and development of property was a prohibited transaction that disqualified the IRA from exemption in bankruptcy. In re Kellerman, No. 09-13935 (Bankr. E.D. Ark. May 26, 2015). [Read more…] about IRA Exemption Lost Due to Prohibited Transaction
Child Tax Credit Refund Exemptible as Public Assistance Benefit
The federal Additional Child Tax Credit is a “public assistance benefit,” which may be exempted in bankruptcy under Missouri exemption law. Hardy v. Fink (In re Hardy), No. 14-1181 (8th Cir. June 2, 2015). [Read more…] about Child Tax Credit Refund Exemptible as Public Assistance Benefit
Automatic Stay Is Not Equivalent to Homestead Exemption
Bankruptcy’s automatic stay does not provide the benefits of Florida’s homestead exemption to preclude the debtors’ use of the state wildcard exemption. Valone v. Waage (In re Valone), No. 14-11457 (11th Cir. Apr. 29, 2015). [Read more…] about Automatic Stay Is Not Equivalent to Homestead Exemption
Separated Spouses Chapter 7 Cases Consolidated
Factual considerations supported consolidation of separated spouses’ chapter 7 cases where the husband claimed federal exemptions and the wife claimed state exemptions. Boellner v. Dowden (In re Boellner), No. 14-2816 (8th Cir. May 12, 2015). [Read more…] about Separated Spouses Chapter 7 Cases Consolidated
Lump Sum Rollover from IRA to Annuity Not “Premium”
The Eighth Circuit found that the debtor’s individual retirement annuity funded by a lump sum rollover contribution from his IRA was properly exempted from his chapter 7 bankruptcy estate. Running v. Miller (In re Miller), No. 13-3682 (8th Cir. Feb. 13, 2015). [Read more…] about Lump Sum Rollover from IRA to Annuity Not “Premium”
Lump Sum Workers’ Compensation Settlement Exempt under 522(d)(11)
Contrary to majority opinion, proceeds of a lump sum workers’ compensation settlement were found to be exemptible under section 522(d)(11)(E), to the extent necessary for support of the debtor and his dependents. In addition, a Medicare “set aside” is not property of the estate. Carr v. Arellano (In re Arellano), No. 14-990 (Bankr. M.D. Pa. Jan. 5, 2015). [Read more…] about Lump Sum Workers’ Compensation Settlement Exempt under 522(d)(11)
Denial of Motion to Reopen to Amend Exemption Was Abuse of Discretion
The bankruptcy court abused its discretion when it refused to reopen the debtor’s chapter 7 case to permit him to amend his schedules to claim his homestead exemption and seek avoidance of judicial liens. Ludvigsen v. Osborne (In re Ludvigsen), No. 14-39 (B.A.P. 1st Cir. January 16, 2015). [Read more…] about Denial of Motion to Reopen to Amend Exemption Was Abuse of Discretion