Ellmann v. Baker (In re Baker)

(6th Cir. July 2, 2015)

The Sixth Circuit applies the Supreme Court’s 2014 decision in Law v. Siegel and affirms the bankruptcy court’s order allowing the debtors to amend their bankruptcy schedules and claim an exemption in a cause of action they failed to disclose in their original schedules. The debtors had received a discharge and the case was closed with the original schedules in place. They then pursued the cause of action. The trustee moved to reopen the bankruptcy case, and the debtors sought to amend their schedules and claim an exemption in the cause of action. The trustee objected, arguing the debtors acted in bad faith and with fraudulent intent in concealing the asset. Relying on Law v. Siegel, the court holds a debtor’s exemption cannot be taken away as a sanction. The court also finds the trustee’s objection was untimely. Opinion below.

2015-07-02 – in re baker

Author: Matt Lindblom

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