Bankr. No.:
94-10095
Chapter:
7
Date of Decision:
February 27, 1995
Issue:
Whether Debtors could claim annuity exempt where they obtained loans pre-petition from family members, gave security in vehicles, and used loan proceeds to purchase annuity?
Ruling:
Debtors could claim annuity exempt. While funds were borrowed to purchase the annuity and while the loans were from family members, the transactions appeared to be at arms' length, the amount purchased was reasonable, and selling their vehicles outright to obtain funds may have deprived Debtors of needed transportation. Their action constituted legitimate pre-bankruptcy planning based on the evidence presented.
Full Bankruptcy Court Decision:
