Jahn v. Burke (In re Burke)

(6th Cir. July 14, 2017)

The Sixth Circuit affirms the bankruptcy court’s order granting the debtors’ motion to compel the Chapter 7 trustee to abandon their residential real property. The trustee sought to evict the debtors in order to sell the property and pay creditors. The trustee argued that because he tendered the homestead exemption payment to the debtors, eviction should be permitted. The debtors argued and presented evidence to establish that there was no equity for the estate considering the condition of the property. Opinion below.

Judge: Gilman

Attorneys for Debtors: William Thomas Bible, Jr., William P. Glascock, Jr.

Attorneys for Trustee: Richard Palmer Jahn, Jr., Nancy A. Cogar

2017-07-14 – in re burke

Author: Matt Lindblom

In re Morris

(Bankr. W.D. Ky. July 12, 2017)

The bankruptcy court sustains the creditors’ objection to the debtors’ claimed homestead exemption. The property was not owned solely by the debtors, so the exemption would apply only to their partial interest in the property. The property was sold but there was no evidence as to the amount allocated to the debtors’ interest in the property. Opinion below.

Judge: Lloyd

Attorney for Debtors: Mark H. Flener

Attorney for Creditors: Kerrick Bachert PSC, Scott A. Bachert

2017-07-12 – in re morris and bellair

Author: Matt Lindblom

Holley v. Corcoran (In re Holley)

(6th Cir. Oct. 25, 2016)

The Sixth Circuit reverses the bankruptcy court’s order permitting the Chapter 7 trustee to be paid her administrative fee from proceeds of the sale of the debtors’ Michigan real property. The debtors claimed the Michigan exemption for real property they owned. The trustee sold the property, paid creditors, and then obtained an order from the court permitting her administrative fee to be paid from the remaining proceeds. The bankruptcy court reasoned that the debtors used the full benefit of the exemption by the trustee accepting a lower purchase price from the debtors’ preferred purchaser. The Michigan statute provides that the exemption covers sale proceeds, and the bankruptcy court incorrectly applied the statute. Opinion below.

Judge: Cook

Attorney for Debtors: Melonee L. Monson-Holley

Attorney for Trustee: Beadle Smith, Thomas L. Beadle

2016-10-25-in-re-holley

Author: Matt Lindblom

In re Aubiel

(6th Cir B.A.P. July 22, 2015)

The bankruptcy appellate panel affirms the bankruptcy court’s determination that the debtor was not entitled to claim the Ohio homestead exemption for his 46-foot boat. While the statute permits the homestead exemption to be applied to personal property, the bankruptcy court determined that the trustee met his burden of rebutting the presumption that the exemption was allowable and the debtor failed to establish that the boat was his primary residence. Opinion below.

2015-07-22 – in re aubiel

Author: Matt Lindblom