Bankr. No.:
25-50047
Chapter:
7
Date of Decision:
February 26, 2026
Issue:
Whether the chapter 7 debtors may claim a homestead exemption under S.D.C.L. §§ 43-31-1, 43-31-4, and 43-45-3(1) in property which they learned prior to filing that one of the debtors, his mother, and his mother’s boyfriend owned as joint tenants with full right of survivorship, where the nondebtor owners resided, and where the debtors, at the time of filing bankruptcy, were living on a part-time basis with no intention of living there in the future?
Ruling:
No, the Court sustained the chapter 7 trustee’s objection to the debtors’ claim of a homestead exemption. The parties stipulated to the late discovery of one of the debtor’s interest in the property, the nondebtor owners residing there, and the temporary, part-time nature of the debtors’ relationship to the property with no intent of living there in the future. Even though the debtors have found shelter on the property at times of transition, this connection to the property in light of the other facts was insufficient to establish intent to make it the debtors’ homestead. The property did not possess the character of a homestead for the debtors on the date of filing.
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