Bankr. No.:
06-40175
Chapter:
7
Date of Decision:
December 14, 2006
Issue:
Whether Debtor could claim her right to receive up to $10,000 when her ex-husband sells her former homestead exempt as proceeds under S.D.C.L. § 43-45-3?
Ruling:
No. For there to be proceeds, there must have been a sale, and no sale had taken place. However, Debtor’s right to payment was personal property within the meaning of S.D.C.L. § 2-14-2(19) and could be claimed exempt under S.D.C.L. § 43-45-4, up to the amount of her remaining personal property exemption. The balance of the $10,000 and Debtor’s interest in the former homestead itself remained property of the estate and were thus subject to the trustee’s administration.
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