Date of Decision:
April 7, 2011
Whether the debtor could consider an asset fully exempt from property of the estate, and thus retain its possession, if he valued the item at $1 on schedule B and claimed that $1 value exempt on schedule C?
The debtor only claimed $1 of the item's total value exempt. Thus, the trustee only needed to pay the debtor $1 for the item, and the debtor had to turn over the item to the trustee to liquidate. The item's value in excess of $1 remained property of the estate.
The U.S. District Court, the Hon. Roberto A. Lange, affirmed the Bankruptcy Court’s decision and the Eighth Circuit Court of Appeals affirmed the District Court’s decision.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion:
Full Eighth Circuit Court of Appeals Opinion: