The Sixth Circuit found that prejudice to creditors was unlikely to be a legitimate basis for denying a debtor’s motion to amend her schedules to increase her exemption claim, and that even if it were a legitimate basis, the trustee failed to show the existence of such prejudice. Westry v. Lim (In re Westry), No. 14-1440 (6th Cir. Dec. 30, 2014). [Read more…] about Sixth Circuit Reverses Denial of Amendment to Exemptions
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 . . .
Rent-Stabilized Lease Is Exempt as Public Assistance Benefit
The New York Court of Appeals determined that a rent-stabilized lease is a public assistance benefit subject to state exemption laws. Santiago-Monteverdi v. Pereira (In re Santiago-Monteverdi), 2014 NY Slip Op. 8051 (N.Y. Nov. 20, 2014). [Read more…] about Rent-Stabilized Lease Is Exempt as Public Assistance Benefit
“Public Assistance” Exemption Revisited
In contrast with the recently reported case, In re Vazquez, the BAP for the Eighth Circuit reiterated its analysis of what constitutes “public assistance,” under Minnesota exemption laws to take into consideration whether the recipient of the assistance is “needy.” Christians v. Dmitruk (In re Dmitruk), No. 14-6023 (B.A.P. 8th Cir. Sept. 15, 2014). [Read more…] about “Public Assistance” Exemption Revisited
“Public Assistance Benefit” Not Tied to Wealth of Debtor
The definition of “public assistance benefit” for bankruptcy exemption purposes is not tied to the affluence of the debtor. In re Vazquez, No. 13-32174 (Bankr. N.D. Ill. Sept. 8, 2014). [Read more…] about “Public Assistance Benefit” Not Tied to Wealth of Debtor
NACBA Files Amicus on Rolled Over Annuity
The NACBA membership has filed an amicus brief in the Eighth Circuit case of Running v. Miller (In re Miller), No. 13-3682, arguing that the debtor’s single premium annuity funded by a rolled over tax exempt IRA qualifies as an individual retirement annuity that is subject to exemption in bankruptcy under section 522(b)(3)(C). [Read more…] about NACBA Files Amicus on Rolled Over Annuity
Bankruptcy Specific Exemption Triumphs Again
For the seventh time Kansas’s bankruptcy-specific exemption for earned income tax credit (EITC) has emerged unscathed from constitutional challenge. Williamson v. Murray (In re Murray), No. 13-34 and Williamson v. Beach (In re Beach) No. 13-37 (B.A.P. 10th Cir. March 4, 2014) (cases administratively merged). [Read more…] about Bankruptcy Specific Exemption Triumphs Again
Supreme Court Finds that Court May Not Surcharge Homestead Exemption
In a unanimous decision authored by Justice Scalia, the Supreme Court found that a bankruptcy court may not surcharge the homestead exemption as a result of the debtor’s misconduct. Law v. Siegel (In re Law), No. 12-5196, 571 U.S. ___ (March 4, 2014). [Read more…] about Supreme Court Finds that Court May Not Surcharge Homestead Exemption
Court Defines “Residence” Generously for Exemption Purposes
In two cases out of North Carolina, the bankruptcy court interpreted the state definition of “residence” for exemption purposes. In re Davila, No. 13-3246 (Bankr. E.D. N.C. Jan. 30, 2014) and In re Whitney, No. 13-05671 (Bankr. E.D. N.C. Jan. 15, 2014). [Read more…] about Court Defines “Residence” Generously for Exemption Purposes
Carve-Out Agreement Does Not Go to Debtors’ Homestead Exemption
Funds paid to the chapter 7 trustee out of the sale of debtors’ homestead could not be exempted where the sale did not fully satisfy outstanding liens. Baldridge v. Ellmann (In re Baldridge), No. 13-1700 (6th Cir. Feb. 3, 2014) (per curiam). [Read more…] about Carve-Out Agreement Does Not Go to Debtors’ Homestead Exemption