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§ 522(c)

Pasquina v. Cunningham (In re Cunningham)

Ruling
Proceeds of sale of exempt homestead were not subject to nondischargeable claim by creditor.
Procedural posture

In a bankruptcy case, appellant creditor sought review of a decision of the District Court for the District of Massachusetts, which held that the postpetition sale of appellee debtor's home, for which he had obtained a homestead exemption under Mass. Gen. Laws ch. 188, § 1, protecting it from creditors, did not cause the proceeds of the sale to lose their exempt status under the Bankruptcy Code and become subject to a prepetition debt.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on January 22, 2008 , LexisNexis #0208-065

In re Raffone

Ruling
Debtors could not reopen case to expand exemption in property subject to judgment lien beyond amount originally claimed.
Procedural posture

The debtors filed for relief under chapter 7 of the United States Bankruptcy Code, and the case was closed in February 2002. The debtors sought to reopen the case for a ruling that the creditors could not proceed with post-petition lien rights on the debtors' real property. The debtors filed a motion to avoid the lien and to compel compliance with the exemption continuation provisions of 11 U.S.C. § 522(c).

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Consumer opinion summary, case decided on January 16, 2008 , LexisNexis #0208-136

In re Duggan

Ruling
Trustee did not have authority to exercise liquidation rights of non-appearing domestic support obligation creditors.
Procedural posture

The debtors filed for relief under chapter 7. The debtors both scheduled domestic support obligations ("DSO") creditors with substantial claims. The chapter 7 trustee filed an objection to the debtors'exemptions on behalf of the DSO creditors.

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opinion summary, case decided on August 15, 2007 , LexisNexis #0907-081

United States v. Hyde

Ruling
Obligation under Mandatory Victims Restitution Act was not subject to homestead exemption.
Procedural posture

The District Court for the District of Massachusetts ruled that defendant bankruptcy debtor's restitution order, imposed in a criminal case, created an entirely new obligation owed to plaintiff United States unaffected by the debtor's homestead exemption and 11 U.S.C. § 522(c), the United States could enforce its garnishment order against sale proceeds of the debtor's home. The debtor appealed the district court's order.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on August 07, 2007 , LexisNexis #0807-130

In re Waters

Ruling
IRA was exempt from domestic support obligation claims during pendency of case.
Procedural posture

The chapter 7 trustee filed an objection to the debtor's claim of exemption. The trustee contended that the debtor's individual retirement account ("IRA") was not exempt due to the existence of claims for domestic support obligations.

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opinion summary, case decided on June 25, 2007 , LexisNexis #0807-076

Rupp v. Elmasri (In re Elmasri)

Ruling
Trustee could pay off liens with proceeds of sale of homestead even if impairment of exemption resulted.
Procedural posture

After debtor filed a chapter 7 petition, plaintiff, who was his ex-wife, and intervenor, a former law guardian appointed in connection with debtor's state court matrimonial action, sought payment of judgments against debtor from $50,000 that constituted debtor's homestead exemption under state law and was expected as proceeds from the sale of his residence. The status of such claims under 11 U.S.C. § 522(c) was at issue.

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opinion summary, case decided on May 24, 2007 , LexisNexis #0707-024

In re Vandeventer

Ruling
BAPCPA did not authorize trustee to administer otherwise exempt property to satisfy domestic support obligations.
Procedural posture

A chapter 7 trustee filed a timely objection to a debtor's claims of exemptions in a pickup truck and a motorcycle. The trustee asserted that 11 U.S.C. § 522(c)(1) required the disallowance of these exemptions so that the assets might be liquidated and the proceeds paid to the debtor's ex-wife, who held a claim for a domestic support obligation ("DSO").

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opinion summary, case decided on April 20, 2007 , LexisNexis #0807-077

In re Quezada

Ruling
Fully exempt homestead could not be sold by trustee to satisfy domestic support obligation.
Procedural posture

The chapter 7 trustee filed an objection to debtor's claimed homestead exemption, a request for authority to sell homestead to pay outstanding domestic support obligations, and a motion to compel turnover of documents.

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opinion summary, case decided on February 07, 2007 , LexisNexis #0407-004

In re Covington

Ruling
Disallowance of exemption was not prerequisite to enforcement of domestic support obligation against the exempt property.
Procedural posture

Movant trustee objected to respondent debtor's exemptions in a $1,000 bank deposit and an automobile in a chapter 7 case. The trustee filed a motion to sell the automobile.

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opinion summary, case decided on September 22, 2006 , LexisNexis #1006-109

In re Guido

Ruling
Motion to require trustee to abandon second mortgage was denied since second mortgage was unhampered by section 522(c) and had priority under state law over homestead exemption.
Procedural posture

After debtor filed for chapter 7 bankruptcy, plaintiff trustee filed an adversary proceeding against defendant creditor seeking to avoid a preferential transfer pursuant to 11 U.S.C. § 547(b). The court approved their agreement to avoid a second mortgage and preserve it for the bankruptcy estate's benefit and allowed the debtor's motion to avoid a judicial lien. The debtor moved to require the trustee to abandon the second mortgage.

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opinion summary, case decided on June 09, 2006 , LexisNexis #0706-056