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In re Richard H. Tiede and Doris K. Tiede

Bankr. No.: 
95-40038
Chapter: 
7
Date of Decision: 
August 9, 1995
Issue: 
: (1) Whether the debtors could claim exempt as a homestead their interest in some contract for deed payments? (2) Whether the Trustee's failure to assume a contract for deed on some real property constituted an abandonment of the contract for deed to the debtors?
Ruling: 
(1) Debtors could not claim exempt their interest in some contract for deed payments under South Dakota's homestead laws because they had never occupied the real property as their homestead before the property was sold on a contract for deed. (2) The trustee's failure to assume the contract for deed did not constitute an abandonment of the contract. While the contract was deemed rejected under § 365(d)(1), the purchaser had the option under §§ 365(i) and 365(j) to treat the contract as terminated and seek damages or continue in possession, make the payments, and receive title. Property is not deemed abandoned under § 554(c) until the case is closed.
Full Bankruptcy Court Decision: