LexisNexis® Legal Newsroom
U.S. Supreme Court Will Hear Bankruptcy Case Involving Charge on Debtor’s Property

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 17 granted certiorari in a case involving the question of whether a bankruptcy court has the power to levy a financial charge against a Chapter 7 debtor's residential property, which he has claimed falls under the homestead exemption...

Supreme Court to Consider Pro Se Challenge to Exemption Surcharge

In an unusual move, the Supreme Court granted cert yesterday to consider the petition of a California man who filed a pro se petition for cert seeking to review the decision of a bankruptcy court to surcharge his homestead exemption under section 105. No. 12-5196, Law v. Siegel . The petition for...

U.S. High Court To Rule On Bankruptcy Exemption For Inherited Retirement Accounts

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Nov. 26 granted certiorari in a case in which a debtor couple contend that high court review is needed to settle a split in the circuit courts regarding whether Chapter 7 debtors are permitted to exempt money in an inherited individual...

Validity of Surcharge on Debtor’s Home Debated at U.S. Supreme Court

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court heard oral arguments Jan. 13 in a case in which a Chapter 7 debtor argues that the Ninth Circuit U.S. Court of Appeals wrongly affirmed a ruling in which a bankruptcy court levied a surcharge on his residential property as punishment to...

U.S. High Court Reverses; Assets Cannot Be Used to Pay Bankruptcy Trustee’s Attorney Fees

WASHINGTON, D.C. — (Mealey’s) In a unanimous decision, the U.S. Supreme Court today reversed a Ninth Circuit U.S. Court of Appeals ruling and held that a bankruptcy court exceeded the limits of its authority when it ruled that $75,000 that was protected under the homestead exemption in a...

Texas Homesteads Sold Post-Petition Take Another Hit

Texas bankruptcy judge Jeff Bohm has ruled that a chapter 7 debtor who sold his homestead over a year after filing bankruptcy could not keep the portion of the proceeds when he failed to reinvest them within six months. In re Smith , 2014 Bankr. LEXIS 3344 (Bankr. S.D. Tex. 8/4/14) [an enhanced version...

Supreme Court Rules Debtor Entitled to Funds Remaining Upon Conversion of Chapter 13 Case

Acknowledging that the statutory language "does not say expressly" what should happen, the Supreme Court nevertheless ruled that undistributed funds held by the Chapter 13 trustee should be returned to the debtor following a conversion. The Court described its result as "the most sensible...

Second Western District (TX) Judge Finds Proceeds From Post-Petition Sale Can't Be Clawed Back in Chapter 7

After sorting through conflicting precedents, Judge Craig Gargotta has ruled that a chapter 7 debtor who owned a homestead property on the date of bankruptcy and claimed the property as exempt did not lose the exemption when the property was sold and proceeds were not reinvested within six months. Lowe...