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§ 522(b)

In re Channon

Ruling
Prepetition conversion of non-exempt assets into exempt assets found not fraudulent under state law.
Procedural posture

This matter was before the court on two creditors' objection to debtor's exemptions. The creditors objected to the chapter 7 debtor's claimed exemption in certain funds debtor deposited pre-petition into a Roth Individual Retirement Account (Roth IRA).

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Consumer opinion summary, case decided on February 24, 2010 , LexisNexis #0510-049

In re Harrod

Ruling
Trustee's objection to debtor's claimed homestead exemption in mobile home overruled.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code, and claimed that a mobile home she occupied was her homestead. A trustee for a trust that was involved in litigation with the debtor in state court filed an objection to the debtor's claim. After the trustee filed his objection, the debtor amended her Schedule C to show that she claimed a homestead exemption in the mobile home under Mont. Code Ann. §§ 70-32-201 et seq. and 31-2-106.

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Consumer opinion summary, case decided on January 22, 2010 , LexisNexis #0310-117

In re Dufin

Ruling
Exemption of premium payments on life insurance policies allowed pursuant to state law.
Procedural posture

The chapter 7 debtors claimed exemptions of premium payments made on two universal life insurance policies pursuant to Utah Code Ann. § 78B-5-505. The trustee objected to the claimed exemptions on the ground that under § 78B-5-505(1)(a)(xiii), the debtors were not entitled to an exemption of payments made on the policies during the one year period prior to the petition date.

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Consumer opinion summary, case decided on December 09, 2009 , LexisNexis #0110-081

Springel v. Prosser (In re Prosser)

Ruling
All of debtor's claimed exemptions denied as inadequate, incomplete and false disclosures and inaccuracies in schedules established bad faith.
Procedural posture

The court converted the chapter 11 case of respondent debtor to a chapter 7 case. The debtor claimed exemptions under 11 U.S.C.S. § 522(b)(3). Movants, the chapter 7 trustee, the chapter 11 trustee, and others, filed objections to the exemptions claimed by the debtor, alleging that the debtor conducted himself in bad faith and in an effort to thwart the bankruptcy process.

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Consumer opinion summary, case decided on October 09, 2009 , LexisNexis #1109-078

In re Holland

Ruling
Debtor's real property was protected by exemption applicable in state where property was located.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code on October 15, 2005, and the bankruptcy court sustained a chapter 7 trustee's objection to the debtor's claim that real property she owned in Florida was exempt under former 11 U.S.C.S. § 522(b)(2)(B) (now 11 U.S.C.S. § 522(b)(3)(B)). The U.S. District Court for the Northern District of Illinois reversed the bankruptcy court's judgment and remanded the case.

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Consumer opinion summary, case decided on September 03, 2009 , LexisNexis #1009-136

Sheehan v. Peveich

Ruling
State exemption scheme could not violate Supremacy Clause given specific authorization by the Bankruptcy Code.
Procedural posture

In eight consolidated cases, appellant trustee sought review of decisions of the Bankruptcy Court for the Northern District of West Virginia, which overruled the trustee's objections and allowed exemptions claimed by debtors pursuant to W. Va. Code § 38-10-4. The trustee had objected to these claims of exemption, arguing that § 38-10-4 was preempted by federal law.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on July 24, 2009 , LexisNexis #0809-118

In re Akulova

Ruling
Debtor could not amend schedules to include and claim exemption for personal injury claim not disclosed originally.
Procedural posture

The trustee objected to the chapter 7 debtor's amendment of her schedules to include the proceeds of her personal injury claim as an exempt asset.

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Consumer opinion summary, case decided on July 21, 2009 , LexisNexis #0909-084

In re Klostermeier

Ruling
Nonrefundable portion of child tax credit could not be claimed as an exemption from property of the estate under state law.
Procedural posture

Pursuant to Ohio Rev. Code Ann. § 2329.66(A)(9)(g), the debtors claimed an exemption in their federal income tax refunds. The chapter 7 trustee objected to the claimed exemption. The bankruptcy court held a hearing on the objection.

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Consumer opinion summary, case decided on May 29, 2009 , LexisNexis #0809-043

In re Ruhl

Ruling
Nonrefundable portion of child tax credit was not property of the estate and not subject to exemption by debtor under state law.
Procedural posture

The debtor claimed an exemption under Ohio Rev. Code Ann. § 2329.66(A)(9)(g) in the tax refund for the child tax credit. The chapter 7 trustee objected to the claimed exemption on the grounds that the debtor's child tax credit was a nonrefundable credit.

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Consumer opinion summary, case decided on April 27, 2009 , LexisNexis #0809-042

In re Applebaum

Ruling
State exemption scheme that was uniformly applied to current and former residents and did not conflict with federal law was constitutional.
Procedural posture

The Trustee objected to the debtors' claimed exemptions under the California Code of Civil Procedure, asserting that California's scheme providing for a separate set of exemptions for debtors in bankruptcy was unconstitutional.

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Consumer opinion summary, case decided on April 17, 2009 , LexisNexis #0609-116