11 U.S.C. § 522

A payment made in response to court orders can be an involuntary transfer under § 522(g)(1), allowing the debtor to seek avoidance under § 522(h).

Mason v. Benjamin Banneker Plaza, Inc. (In Re Mason) · filed 1987-02-10(g)(1)

It can hardly be said that the issue of whether the payment here was a “voluntary transfer” was even as close as it was in any of the foregoing cases. Therefore, we conclude that the Debtor may, per §§ 522(g)(1) and (h), initiate this proceeding to avoid the allegedly preferential transfer in issue.

Section 522(h) lets a debtor use the trustee’s avoidance powers to avoid an involuntary transfer to the extent the debtor could have exempted the property if it had not been transferred.

McKeever v. McClandon (In Re McKeever) · filed 1991-10-29(h)

This Court finds that the debtors in this matter likewise have standing to utilize § 522(h) to avoid the tax sale transfer since the tax sale purchaser would have no tax deed if the trustee avoided the transfer and therefore would have no ground for claiming that the homestead exemption was not effective against her claim. ... The Court finds therefore that the debtors have standing under § 522(h) to seek to avoid the tax deed transfer to the extent of the homestead exemption to which they would have been entitled under Illinois law if the tax sale transfer had not occurred.

Section 522(f)(2)(B) permits a debtor to avoid a nonpossessory, nonpurchase-money security lien on exempt tools or implements of the debtor’s trade to the extent the lien impairs an exemption claimed under § 522(b)(1).

In Re Kobs · filed 1994-02-01(b)(1), (f)(2)(B)

The truck is a “tool” or “implement” of the trade of the debtor under § 522(f). It follows that Mr. Kobs can avoid the fixing of the Bank’s non-possessory, non-purchase money hen on his interest in the property to the extent it impairs his exemption, in this case the whole value of the truck.

Section 522(f)(2) does not let a debtor avoid a nonpossessory, nonpurchase-money lien on a motor vehicle claimed as exempt as household goods or as a tool of the debtor’s trade.

Steele v. United National Bank, Sioux Falls, South Dakota (In Re Steele) · filed 1980-12-17(f)(2)(A), (f)(2)(B)

Debtors are not entitled to avoid Defendant’s lien on the Jeep under 11 U.S.C. Section 522(f)(2)(A). ... This Bankruptcy Court, for the reasons set out above and the reasoning used by the Court in ... Abt, ... holds that Debtors are not entitled to avoid Defendant’s lien on the Jeep Wagoneer under Section 522(f)(2)(B).

Section 522(f)(2)(B) lets a debtor avoid a nonpossessory, nonpurchase-money security interest in tools of trade that impairs an exemption.

In Re Challinor · filed 1987-10-19(f)(2)(B)

To be able to enjoy the exemption as a tool of the trade, a Debtor must be able to avoid the lien of the creditor under § 522(f). ... As a non-possessory security interest, this lien may be avoided by the Debtors if other conditions of § 522(f) are met. ... As such the PCA’s lien may be avoided by these Debtors. ... IT IS ORDERED that the Debtors’ motion to void the lien of the security interest of the Western Montana Production Credit Association in the D-7F Cat Tractor is granted and the lien is voided under Section 522(f)(2)(B) of the Bankruptcy Code.

Section 522(f)(2)(B) requires the court to consider all the circumstances to determine whether the debtor is legitimately engaged in farming and uses the specific implements or tools on which lien avoidance is sought.

In Re Ottoway · filed 1994-02-07(f)(2)(B)

Section 522(f)(2)(B) requires a determination from all the circumstances of the case whether debtor is legitimately engaged in farming and using the specific implements or tools exempted and on which lien avoidance is sought.

For the state-law exemption option, § 522(b)(2)(A) fixes the applicable exemptions as of the petition-filing date, so a later-enacted state exemption cannot be used.

In the Matter of Robert L. Branch, Debtor-Appellant · filed 1994-02-15(b)(2)(A)

First, section 522(b)(2)(A) of the federal Bankruptcy Code states that exempt property is "any property that is exempt under Federal law ... or state or local law that is applicable on the date of the filing of the petition...." (Emphasis added.)

Section 522(b)(2)(A) requires exemptions in this involuntary bankruptcy case to be determined using the law applicable on the petition filing date.

Royal v. Pancratz (In Re Pancratz) · filed 1994-11-08(b)(2)(A)

The clear language of the statute requires the Court to hold that exemptions are determined on the date of filing.

The court holds that exemptions are determined as of the date the bankruptcy case commenced, making the later change from an unliquidated tort claim to insurance proceeds legally irrelevant.

In Re Kollar · filed 1998-03-06§ 522(a)(2), (b)(2)(A)

The commencement of a case under title 11 is the point in time when a debtor’s estate is created, 11 U.S.C. § 541(a), and when the exemptions from that estate are determined.

Claims to exempt property are determined as of the bankruptcy petition date, so a later settlement or judgment does not change whether the debtor qualified for the exemption.

In Re Kollar · filed 1998-08-07§ 522(a)(2); § 522(b)(2)(A)

Claims to exempt property from a bankruptcy estate are to be determined as of the filing of the petition.

Property is valued for exemption purposes as of the date the bankruptcy petition is filed.

Polis v. Getaways, Inc. · filed 1998-12-30§ 522(a)(2)

the bankruptcy court did not have the luxury of waiting to see the final outcome of that case before determining the value of the exemption. Neither, of course, do I.

Section 522(b)(2)(A) makes the petition date controlling for determining which exemptions are available under applicable state or local law.

In Re Fodor · filed 2006-03-23(b)(2)(A)

Accordingly, the Court finds that July 15, 2005, the date the Debtor filed his petition, is the date that controls what exemptions will be available to the Debtor.

Section 522(b)(3)(A) fixes the bankruptcy exemption determination as of the petition date, except when the case is converted to another chapter.

In Re Lane · filed 2007-03-14(b)(3)(A)

Exemptions in bankruptcy are determined as of the date the petition is filed, unless a case is converted from one chapter of the Bankruptcy Code to another.

Section 522(b)(3)(B) exemption status is fixed as of the bankruptcy filing and is not changed by later events such as a discharge order.

Endurance American Insurance Company v. DiStefano · filed 2023-09-28(b)(3)(B)

Under the snapshot rule, Appellee’s interest in the TBE Property is determined with reference to the moment it was transferred to the bankruptcy estate; the nature and extent of that interest has not been changed by subsequent events. In other words, because the Bankruptcy Court issued the Discharge Order after the exemption determination, the Discharge Order could not have had any bearing on the ability of the Appellee to claim that the TBE Property was exempt under 11 U.S.C. § 522(b)(3)(B).

Section 522(b)(2)(A) determines exemptions under the federal or state law applicable when the bankruptcy petition is filed.

Smith v. State Farm Mutual Automobile Insurance (In Re Smith) · filed 1990-01-18(b)(2)(A)

Under the clear language of the Bankruptcy Code, exemptions must be determined under either the federal or state law which is applicable on the date the bankruptcy petition is filed.

Section 522(b)(2)(A) makes the exemption law in effect on the petition filing date applicable.

In Re Stroble · filed 1991-05-02(b)(2)(A)

In this case federal law controls which exemption statute the debtors may use. 11 U.S.C. § 522 is clear that the exemption statute in effect at the date of the filing of the petition controls.

Under § 522(f)(1), the court applies a value-and-liens formula; when no equity remains after unavoidable liens and exemptions, all judicial liens are avoided.

In Re Cross · filed 1994-03-07§ 522(f)(1)

Since Step (4) does not yield a positive number, avoidance of all judicial liens results. This calculation demonstrates that there is no remaining equity in the property after deducting the amount of the non-avoidable mortgages and the Debtors’ exemptions, thereby requiring that ... judicial liens be avoided under this formula.

Under § 522(f)(1), a debtor may avoid a judicial lien only when it functionally impairs an exemption; an Illinois judgment lien that never attaches to the debtor’s homestead estate does not impair that exemption and need not be avoided.

In Re Harrison · filed 1994-02-22§ 522(f)(1)

As the Creditor’s judicial lien does not ever attach to the Debtor’s homestead estate claimed in the underlying Property or its proceeds, the judicial lien does not legally impair same.

A debtor’s right to avoid a judicial lien under § 522(f) must be exercised within a reasonable time, and laches may bar a delayed lien-avoidance motion even though the Code sets no express deadline.

In Re Hunter · filed 1994-02-23(f)

Although the Code does not set a time limitation for avoiding liens under section 522(f) or elsewhere, the legislative history of 11 U.S.C. § 350(b) provides that laches may constitute a bar to an avoidance action.

Under § 522(c), a properly recorded federal tax lien remains attached to the debtor's prepetition property and property rights even after the underlying taxes are discharged.

Eastwood v. Department of the Treasury, Internal Revenue Service, United States (In Re Eastwood) · filed 1994-02-24(c)

The federal income taxes for 1983, 1984, 1985,1986, and 1987 are dischargeable. However, the federal tax liens, notice of which was properly recorded, continue to attach to all property and rights to property, held by the debtors prior to the date of the filing of the Voluntary Chapter 7 petition in bankruptcy. 11 U.S.C. § 522(c).

Under § 522(c)(2), discharging the debtor's personal tax liability does not invalidate or eliminate a valid federal tax lien.

Dishong v. United States Department of the Treasury Internal Revenue Service (In Re Dishong) · filed 1995-10-23(c)(2)

Therefore, in this case, the discharge of the 1982 personal income taxes does not affect the validity or enforceability of the 1982 federal tax lien.

An exemption claimed under applicable nonbankruptcy law pursuant to § 522(b)(2) does not prevent the court from considering the debtor’s ability to repay debts under § 707(b); the right to claim an exemption and the ability to repay are independent issues.

In Re Morse · filed 1994-03-04(b)(2)

While the court does not dispute that debtors are entitled to any exemption which they may validly claim, the ability to claim an exemption is an independent issue from whether debtors have the ability to repay their debts. ... Reading § 707(b) as operating independent of a debtor’s general claim of exemptions under § 522 merely follows this fundamental principal of statutory construction.

A debtor cannot claim an exemption under § 522(g)(1)(A) for property recovered by the trustee after the debtor voluntarily transferred it.

In re Ames · filed 1994-03-08§ 522(g)(1)(A)

her transfer was clearly voluntary. As such, section 522(g) is inapplicable to her situation, and the TIB’s recovery of the property for the benefit of the estate was proper.

A debtor cannot claim an exemption for property voluntarily transferred and recovered through the trustee’s avoidance action, because §§ 522(g), (h), and (i) limit exemptions for recovered property to specified situations.

Ransier v. McFarland (In Re McFarland) · filed 1994-07-22(g), (h), and (i)

The interest in the residence was transferred voluntarily and the Trustee is seeking to avoid that transfer; therefore, the exemptions are not available.

Section 522(g) preserves a debtor’s ability to claim an exemption in property recovered by the trustee only when the statutory transfer conditions are met.

Schieffler v. Beshears (In Re Beshears) · filed 1995-05-04(g)

However, in order to claim such exemptions, the debtor’s transfer of property must have been involuntary and not concealed.

Section 522(g)(1)(A) bars a debtor from claiming an exemption in property recovered by a trustee when the debtor voluntarily transferred that property.

Hill v. Bryant (In Re Bryant) · filed 1998-06-02§ 522(g)(1)(A)

Here the transfer was a voluntary transfer by the Debtor.

Section 522(g)(1) bars a debtor from claiming an exemption in property voluntarily transferred by the debtor and recovered by the trustee in an adversary proceeding, even if the trustee did not timely object to the exemption claim.

Zubrod v. Duncan · filed 2003-05-29(g)(1)

Accordingly, we hold that Debtor is not entitled to claim a homestead exemption in property voluntarily transferred and recovered by the Trustee in an adversary proceeding, notwithstanding the Trustee’s failure to object within the 30-day period of Fed. R. Bankr. P. 4003(b).

Section 522(g)(1)(A) bars a debtor from exempting property recovered by the trustee only when the debtor voluntarily transferred an interest in that property; without a voluntary transfer, the provision does not apply.

Checkett v. Sutton (In Re Sutton) · filed 2007-03-16(g)(1)(A)

The plain language of § 522(g)(1)(A) recites that the section applies only with respect to property in which the debtor made a voluntary transfer that the trustee recovers for the benefit of the estate. That analysis must begin with the question of whether the debtor voluntarily transferred an interest in the property.

Section 522(g)(1)(A) permits a debtor to exempt property recovered by the trustee only when the transfer was not voluntary.

Redmond v. Tuttle (In Re Tuttle) · filed 1981-06-05(g)(1)(A)

In this case, the Tuttles transferred the subject funds by deposit with the First National Bank in Quinter, Kansas. Although the money was ultimately deposited in an account which the debtors mistakenly thought had been closed, their initial relinquishment of the money to the bank for deposit was entirely voluntary. Thus, the debtors are precluded from exempting the property under Sec. 522(g)(1)(A).

Section 522(g) permits a debtor, in specified circumstances, to claim an exemption in equity created through the Bankruptcy Code’s avoidance powers.

Matter of Sherbahn · filed 1994-03-11§ 522(g)

Indeed, 11 U.S.C. § 522(g) & (h) clearly indicate that there are circumstances under which a debt- or can claim an exemption out of “equity” in property that has been created through the use of the various avoiding powers in the Bankruptcy Code.

Under § 522(e)(2)(B), a creditor's failure to object to a claimed exemption within Bankruptcy Rule 4003's 30-day period does not prevent the IRS from contesting the exemption's validity.

In Re Babich · filed 1994-03-15(e)(2)(B)

A failure to object to a claimed exemption within thirty (30) days after the conclusion of the meeting of creditors under Bankruptcy Rule 4003, does not preclude the IRS from contesting the validity of the claims. See 26 U.S.C. § 6322 and 11 U.S.C. § 522(e)(2)(B).

Section 522(b) does not exempt a debtor’s assets from creditor claims merely because the debtor intends to donate them to charity.

In Re Faulkner · filed 1994-03-28(b)

Neither state, nor federal, law exempts from claims of creditors those assets a debtor intends to donate to charity.

Section 522(f) permits avoidance of a nonpossessory, nonpurchase-money security interest in tools of the trade only while the debtor retains possession; once the creditor obtains possession, the lien cannot be avoided.

In Re Vann · filed 1994-04-11(f)

Once the creditor has done so, the debtor may no longer avail himself of 11 U.S.C. § 522(f) and avoid the now possessory security interest.

Under § 522(b)(2)(A), the debtor’s eligibility for an exemption is determined by the law and facts applicable when the bankruptcy petition is filed.

In Re Walston · filed 1996-01-08(b)(2)(A)

A debtor’s right to claim a particular exemption is determined by the debtor’s status at the time of filing the bankruptcy petition.

For avoiding a judicial lien under § 522(f)(1), the debtor may use the homestead exemption amount in effect when the bankruptcy petition was filed, even if the lien arose before the exemption increased.

Bartlett v. Giguere (In Re Bartlett) · filed 1994-04-22§ 522(f)(1)

The Court therefore concludes that no constitutional violation is presented by the application of the changed exemption amounts, even if this application had to be deemed retroactive in nature, to allow the debtors here involved to avail themselves of the § 522(f)(1) avoiding power against those judicial hens to the full extent of the $30,000 exemption which was in effect at the time they commenced their bankruptcy proceedings.

Section 522(f) requires the exemption supporting lien avoidance to be one to which the debtor would have been entitled when the petition was filed.

In Re Jarski · filed 2003-11-06(f)(1)(A)(i)

But such an exemption is not one to which the debtor would have been entitled as of the date of the petition, as required for avoidance by § 522(f).

A properly filed federal tax lien reaches proceeds that the debtor could otherwise claim as exempt.

In Re Schilling · filed 1995-01-23§ 522(c)(2)(B)

Thus, the IRS is entitled to all of the remaining proceeds including any proceeds which the Debtors could claim as exempt.

Section 522(c)(2)(B) leaves exempt property liable for a debt secured by a tax lien, so a bankruptcy exemption does not defeat that lien.

United States v. Voelker (In Re Voelker) · filed 1994-05-06(c)(2)(B)

Section 522(c) unambiguously prohibits the exemption of certain property to satisfy debts when a “tax lien” is involved.

Bankruptcy exemptions do not protect property from a federal tax lien.

Pansier v. Wisconsin Department of Revenue (In re Pansier) · filed 1997-04-24(c)(2)(B)

Under 11 U.S.C. § 522(c)(2)(B), bankruptcy exemptions are not effective against federal tax liens. The federal tax lien attaches to all of the debtor’s property, without exception.

Under § 522(c), exempt property remains liable during bankruptcy for nondischargeable tax claims under § 523(a)(1).

United States Internal Revenue Service v. Mathews (In Re Mathews) · filed 1997-06-16(c)

However, the bankruptcy court erred in its conclusion that the debtor’s exemption compelled extraction of the $697.40 held by the IRS. 11 U.S.C. § 522(c) provides that property exempted by the debtor remains “liable” during the bankruptcy case for a nondischargeable claim for taxes described in § 523(a)(1).

In a Chapter 13 case, § 522(e) requires the debtor’s receipt of exempt proceeds to wait until completion of all plan payments and entry or imminent entry of discharge.

Matter of Deeble · filed 1994-05-17(e)

To effectuate that condition, a Debtor’s realization of a claim of exempt property must be contemporaneous with completion of the case, which in a Chapter 13 ease, occurs when all payments under the plan have been completed and a discharge has been entered or is to be entered subject only to minor delays in performance of ministerial acts.

Section 522(c) means that a debtor cannot be compelled to contribute exempt property to a Chapter 13 plan.

In re Wrobel · filed 2015-02-13(c)

Section 522 (c) of the Code makes it clear that no debtor may be compelled by the Court to contribute exempt property to a plan.

Section 522(a)(2) fixes exemption value by fair market value at the petition date, and the value of the exemption is fixed by reference to filing.

Wilson v. Rigby · filed 2018-11-27(a)(2)

Accordingly, whether claiming federal or state law exemptions, the value of the exemption is fixed by reference to the date of the filing of the bankruptcy petition.

Property that may be claimed as exempt is not excluded from the bankruptcy estate at the outset and must still be listed and accounted for.

Hutchins v. Fordyce Bank & Trust Co. (In Re Hutchins) · filed 1997-09-16

Similarly, whether or not particular property may be claimed as exempt does not, in the first instance, exclude it from the estate. 11 U.S.C. § 522. Indeed, property may ultimately be excluded from the estate or its value, due to restrictions regarding its transfer or nonassumability, may be so limited as to be burdensome to the estate because there will be no value which can be obtained for distribution to unsecured creditors. But that ultimate finding of fact does not mean the property will not be listed and accounted for as property of the estate.

Section 522 does not prohibit a debtor from converting nonexempt property into exempt property before bankruptcy, absent fraud.

Matter of McKeag · filed 1987-06-16

creating exempt property by borrowing against non-exempt property and granting liens on the non-exempt property, prior to filing Chapter 12, is not bad faith and is not forbidden by the Code.

Section 522 protects exempt assets from distribution to creditors, so exempt homestead value is not included merely by recharacterizing sale proceeds as disposable income.

In Re McCollum · filed 2006-02-22

To adopt Trustee’s position would be to write out protections afforded exempt assets under § 522. ... Exempt means exempt and therefore unavailable to either trustee or claimant. On its liquidation, therefore, the claimants have no right to expect or receive its benefits. ... For the above stated reasons, I hold that Debtor is entitled to retain up to $25,000.00 of sale proceeds in recognition of the homestead exemption.

Section 522(a)(2) values property sought to be exempt at its fair market value on the petition date, but the value of the exemption—not the property’s later fair market value—is what remains fixed.

Gebhart v. Gaughan · filed 2010-09-14(a)(2)

Under 11 U.S.C. § 522(a)(2), “ ‘value’ [of property sought to be exempt] means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate.” ... This argument does not accord, however, with past holdings of this court, which establish that what is frozen as of the date of filing the petition is the value of the debtor’s exemption, not the fair market value of the property claimed as exempt.

Section 522(a)(2) defines “value” for applying § 522 as the property’s fair market value on the petition date.

Goetz v. Weber · filed 2024-03-08(a)(2)

Moreover, these principles have no bearing on whether the post-petition, pre-conversion increase in equity in Goetz’s residence is property of the converted estate: no one disputes the value of Goetz’s residence on the date of filing or the date of conversion, and the Code’s temporally limited definition of “value” in § 522(a)(2) is expressly confined to that section only.

Section 522(l) requires debtors to list property they claim as exempt, including a potential civil claim even if some of its proceeds may be exempt.

Dennis v. Jackson · filed 2021-09-16(l)

However, the Code also provides, “The debtor shall file a ... list of property that the debtor claims as exempt under subsection (b) of this section.” 11 U.S.C. § 522(l). This is the platform for litigating any objections to application of the exemption in question. Yet, appellants did not comply with the statutory duty to identify allegedly exempt assets.

Section 522(l) requires a debtor to have an ownership interest in property claimed as exempt.

In Re Miller · filed 1994-05-25(l)

The trustee argues that this Court should read section 522(1) as implying a requirement that the debtor have an ownership interest in the property claimed as exempt. There is no other logical reading of that section.

Section 522 does not permit a court to add a surcharge exception to the protections for exempt property because of debtor misconduct.

Mazon v. Tardif (In Re Mazon) · filed 2008-09-09

Additionally, as Scrivner noted, the Bankruptcy Code contains express exceptions to the rule that exempted property cannot be used to satisfy pre-petition debts or administrative expenses, and therefore a court may not read additional exceptions such as a surcharge into the statute.

A transfer is involuntary under § 522(g)(1)(A) when fraud, material misrepresentation, or coercion deprives the debtor of knowledge of essential facts and free choice, even if the transfer is not compelled by operation of law.

Davis v. Suderov (In Re Davis) · filed 1994-05-31(g)(1)(A)

In addition, courts recognize that an involuntary transfer of property may occur under circumstances that, although not beyond the debtor’s control, involve fraud, material misrepresentation or coercion.

Under § 522(c), exempt property is protected from prepetition debts unless a statutory exception applies, and a nondischargeable fraud claim is not itself an exception.

In Re Karrer · filed 1994-06-21§ 522(c), including § 522(c)(1) and (c)(2)

Because the homestead property was exempted from the estate, Braunger may not subject it to his claim. Section 522(c) of the Code provides that “[u]nless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose ... before the commencement of the case.... ” There are exceptions for certain types of nondischargeable claims, but a claim for fraud is not one of them.

Section 522(k) protects exempt property from liability for estate administrative expenses, so the debtors' exemptions were not reduced to pay the attorney's contingency fee.

In Re Turner · filed 1996-01-02(k)

The debtor is not liable for expenses incurred by the estate and, contrary to the trustee’s contention, § 522(k). explicitly forbids the payment of these expenses from property which the debtor exempts.

Section 522(c) protects properly exempt property, regardless of whether it has been converted into sale proceeds, from liability for prepetition debts; therefore, exempt homestead-sale proceeds are excluded from disposable income up to the exemption amount.

In Re Kerr · filed 1996-04-22(c)

Thus, the clear language of Section 522(c) protects exempt property, regardless of form, from prepetition debts.

Property exempted under § 522 remains protected from prepetition debts, including a nondischargeable intentional-tort claim, unless the debt falls within one of § 522(c)'s listed exceptions.

In Re Scott · filed 1996-08-26§ 522(c)

There are only four exceptions: (1) nondischargeable taxes; (2) nondischargeable alimony or child support; (3) debts secured by a lien that is not avoided in the course of the bankruptcy; and (4) embezzlement, theft, fiduciary defalcation, and conversion claims, but only where held by a Federal bank or thrift regulatory agencies against an “institution affiliated party.”

Section 522(c) protects property properly claimed as exempt from most prepetition creditors, even if the trustee does not sell it.

In Re Donaldson · filed 1993-07-21(c)

Pursuant to federal bankruptcy procedure, exemptions are claimed when the case is commenced and become final thirty days after the conclusion of the meeting of creditors. Property which has been claimed exempt is forever protected from most prepetition creditors, even if the trustee does not actually sell the asset in which the exemption has been claimed. 11 U.S.C. section 522(c).

Section 522(c) generally shields properly exempted property from liability for prepetition debts, subject to enumerated exceptions such as certain liens and specified nondischargeable debts.

Dollar Bank v. Tarbuck (In Re Tarbuck) · filed 2004-12-03(c)

Section 522(c) provides, in pertinent part: ... Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of ... the debtor that arose ... before the commencement of the case except— ... (1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; ... (2) a debt secured by a lien that is ... (A) (i) not avoided under [certain sections]; ... (ii) not void under section 506(d) ...; or ... (B) a tax lien, notice of which is properly filed; ... (3) a debt of a kind specified in section 523(a)(4) or 523(a)(6) ...; or ... (4) a debt in connection with fraud [regarding] scholarship .... As noted above, Dollar does not have an enforceable lien against the funds in the deposit account and none of the other exceptions apply. Although the courts are divided on the issue of whether a right of setoff defeats a debtor’s right to exempt property under § 522, the majority view is that exempt property is not subject to setoff.

Section 522(c) protects property exempted under § 522 from most prepetition debts, so a creditor generally may not set off a prepetition debt against properly exempted property.

Sexton v. Department of Treasury (In re Sexton) · filed 2014-04-01(c)

Furthermore, contrary to the government’s assertions in its answer, it is settled law within the Fourth Circuit that a properly-claimed exemption trumps a creditor’s right to offset mutual prepetition debts and liabilities.

Section 522 permits a debtor to exempt eligible property from the bankruptcy estate and protects properly claimed exempt property from prepetition debts; when § 522 conflicts with § 553, the exemption applies first.

United States v. Copley · filed 2018-09-10(b)(1), (b)(3), (c)

Finally, the Debtors' rights under § 522 supersede the United States's right to offset under § 553. Section 553's discretionary application, concerns over nullification, and the fundamental policy goals of the Bankruptcy Code support this conclusion. The United States shall release the $3,208.00 overpayment to the Debtors.

Section 522(c) protects properly exempt property from liability for prepetition debts, so a creditor cannot set off a dischargeable prepetition tax debt against it.

Alexander v. Commissioner (In Re Alexander) · filed 1998-04-01(c)

Instead, § 522(c) is controlling. Section 522(e) states exempt property shall not be liable either during or after the bankruptcy for a debtor’s prepetition debts, including dischargeable tax debts of the nature involved in this ease. Debtor properly exempted his 1996 tax refund; therefore, because the 1991 tax debt for which the IRS intercepted Debtor’s exempt tax refund was a dischargeable debt, set-off was impermissible under § 522(c).

Section 522(c) generally protects exempt property from recovery for prepetition debts after discharge, subject to statutory exceptions.

CQM, Inc. v. VandenBush · filed 2020-02-07(c)

Moreover, the debtor has exempted most of the property from which the plaintiffs seek to collect. ... Exempt property, with exceptions not applicable here, is not available for recovery for discharged debts. 11 U.S.C. § 522(c).

Section 522(d)(10)(E) protects qualifying retirement-plan payments only to the extent reasonably necessary for the debtor’s support, so the exemption may be denied for the amount needed to pay estate claims and administrative expenses.

In Re Dunn · filed 1997-11-12§ 522(d)(10)(E)

The Court further disallows Dunn’s exemption of his interest in the Annuity Savings Plan under § 522(d)(10)(E) to the extent needed by the estate to pay claims and administrative expenses.

Section 522(d)(10)(E) allows a debtor to exempt qualifying annuity payments to the extent reasonably necessary for support.

In Re Barnes · filed 2001-06-06(d)(10)(E)

Therefore, all of that annuity is reasonably necessary for her support.

Section 522(d)(10)(E) exempts qualifying annuity payments only to the extent reasonably necessary for the debtor’s and dependents’ support, measured as of the bankruptcy petition date.

Walsh v. Helsel (In Re Helsel) · filed 2005-06-30(d)(10)(E)

By its express terms, a debtor’s interest in an annuity may be exempted under § 522(d)(10)(E) “to the extent reasonably necessary for the support of the debtor and any dependent of the debtor”. ... Whether a particular interest in estate property qualifies for exemption must be determined “as of’ the commencement of the bankruptcy case. ... In light of the information provided in Schedule I and Schedule J, we conclude that debtors’ monthly net income exceeds their monthly expenses by as much as $164.21 and, as a consequence, that the above annual payments are not exemptible pursuant to § 522(d)(10)(E).

Section 522(d)(10)(E) exempts plan payments only to the extent reasonably necessary to support the debtor and any dependents.

In re Lima · filed 1994-06-21(d)(10)(E)

The statute allows the exemption only to the extent that the funds are “reasonably necessary” to support the debtors and their dependents.

Section 522(b)(4)(D)(ii) preserves the exemption for a distribution from an eligible retirement fund only when it is deposited into another eligible fund within sixty days; otherwise, the exemption ceases.

In re Sullivan · filed 2019-01-24(b)(4)(D)(ii)

If the funds are not deposited into another eligible fund within sixty days after distribution, the exemption protection ceases.

A dependent may claim exemptions for the debtor only when the debtor has not filed an exemption list; after the debtor files one, § 522(1) does not let the dependent change or add exemptions.

In Re Jamie M. Blair, Debtor Todd G. Finneran v. Associates Finance Services Jamie M. Blair, Kenneth R. Blair · filed 1994-08-03§ 522(1); § 522(a)(1)

However, in this case, the debtor did file a list of exemptions. Thus, Sec. 522(1) does not empower Blair to file such a list.

Section 522(f) permits a debtor to reopen a closed bankruptcy case to seek lien avoidance only when reopening will not prejudice the creditor.

In Re Cummings · filed 1994-09-19(f)

Nonetheless, a debtor may reopen a bankruptcy case to avoid a lien only if there is no finding of prejudice to the creditor.

Section 522(h) lets a debtor pursue certain trustee avoidance claims when the trustee does not act, but it does not authorize the debtor to bring a turnover action under § 542.

Price v. Gaslowitz (In Re Price) · filed 1994-09-29(h)

Congress did not specifically include an action under section 542 in the list of actions that a debtor may bring under section 522(h). This court will not imply one.

Section 522(h) limits a debtor’s avoidance of a preferential transfer to the extent the transfer impairs an exemption, just as § 522(f) does.

Schroeder v. First Union National Bank of Virginia (In Re Schroeder) · filed 1994-10-05(h), (f)

The court finds that the limitations on the extent of the avoidance power in subsections 522(f) and 522(h), based upon impairment of exemption, are the same.

Section 522(g) does not bar a debtor from claiming a homestead exemption in an interest that was never transferred and therefore was not recovered by the trustee.

In Re Miller · filed 1994-10-18(g)

This interest was never transferred and therefore not recoverable by the Trustee. Accordingly, 11 U.S.C. § 522(g) is not applicable to Barbara and she is entitled to claim her homestead exemption.

Section 522(g)(1)(A) bars the debtor from claiming an exemption in property recovered by the trustee when the debtor voluntarily transferred an interest in that property.

Patterson v. Spradlin (In Re Patterson) · filed 1995-08-08(g)(1)(A)

If the trustee avoids this security interest of the defendant in the automobile, the debtor may not claim the property as exempt because it was voluntarily transferred i.e., the debtor voluntarily gave the defendant a security interest in the automobile. 11 U.S.C. § 522(g)(1)(A).

Under 11 U.S.C. § 522(g), a debtor cannot claim an exemption in property voluntarily conveyed out of the estate and later recovered.

In Re Yasipour · filed 1999-05-19(g)

Even if Mrs. Ya-sipour was present as a party in this proceeding, clearly a voluntary conveyance out of the estate could not be claimed as an exemption by the Debtor upon its recovery. 11 U.S.C. § 522(g).

Section 522 allows an individual debtor to exempt property that is or otherwise would be property of the bankruptcy estate; property the debtor does not own and that never enters the estate cannot be exempted.

In Re Clement · filed 2005-07-18

The trustee offered no evidence to dispute a finding that the annuity contracts did not belong to the debtors. The contracts belong to American General. Thus, they never became property of the bankruptcy estate, and accordingly, cannot be exempted under 11 U.S.C. § 522.

Section 522 requires a debtor to elect either the federal exemptions under § 522(b)(1) or the alternative federal/state exemptions under § 522(b)(2), rather than combining both schemes.

In Re Lamb · filed 1994-11-10(b)(1)-(2)

This section clearly requires the debtor to choose between subparagraphs (b)(1) and (b)(2) of Section 522, not to choose both or some of both.

Insurance proceeds subject to the creditor’s contractual and equitable lien could not be claimed as exempt under § 522(d)(5).

Pare v. Natale (In Re Natale) · filed 1994-11-23(d)(5)

In light of our ruling that RICCU’s lien is contractual as well as equitable, said lien does not fit within any of the avoidable § 522 categories. Accordingly, said funds may not be claimed as exempt by the Debtors.

Because Maine has opted out of the federal exemption scheme, a Maine resident may not claim federal exemptions under § 522(d), including the exemptions listed in § 522(d)(11)(A) and (D), and is limited to Maine exemptions.

In Re Petit · filed 1994-11-29§ 522(b)(1) (and consequently § 522(d)(11)(A) and (D))

that as a resident of Maine, the Debtor may not claim property as exempt under 11 U.S.C. § 522, but is limited to the Maine state exemptions.

Maine's opt-out law requires a Maine debtor to claim exemptions under state law rather than § 522(d).

Petit v. Fessenden · filed 1995-03-10(d)

Maine is an “opt out” state, meaning that a debtor must ... claim property as exempt under state law rather than section 522(d) in the bankruptcy code.

Because Florida opted out of the federal exemptions, the debtor could not claim the life-insurance proceeds as exempt under § 522(d)(11)(C).

In Re Williams · filed 1998-07-24§ 522(d)(11)(C)

Section 522 exemptions are applicable only if a state does not “opt out” of the federal exemptions. Pursuant to Florida Statute Section 222.20 “residents of this state shall not be entitled to the federal exemptions provided in s. 522(d) of the Bankruptcy Code of 1978 (11 U.S.C. § 522(d)).”

An individual retirement account qualifies as a similar plan under § 522(d)(10)(E), and the exemption protects the debtor’s right to receive its payments even when that right is not fully exercisable on the bankruptcy petition date, subject to the reasonably necessary support limitation.

In Re Bates · filed 1994-12-13(d)(10)(E)

The exemption at issue applies to a debt- or’s right to receive payments from an individual retirement account whether or not the right is fully and freely exercisable on the date of his or her bankruptcy petition.

An IRA may qualify for the § 522(d)(10)(E) exemption without the debtor currently receiving or being eligible to receive payments without penalty; the amount exempted remains limited to what is reasonably necessary for support.

Frank v. Wiggins (In Re Wiggins) · filed 2006-04-25(d)(10)(E)

No other limitation is imposed, and no higher purpose of the Bankruptcy Code is invoked.

A judicial lien awarded in a Kansas divorce decree to equalize property is not avoidable under § 522(f)(1) when the debtor receives the homestead interest contemporaneously with the lien, because the lien did not fix on a preexisting interest of the debtor.

In Re Hilt · filed 1994-12-16(f)(1)

In light of the examined law, the purpose of § 522(f)(1), and the state court’s paramount concern with the division of marital property as reflected in K.S.A. § 60-1610(b), this Court finds that the Kansas Supreme Court would rule that the divorce decree in this case granted Margaret Hilt’s interest in the homestead contemporaneously with the hen given Leonard Hilt in order to equalize the distribution of property in a just and reasonable way. Furthermore, that court would determine that Leonard Hilt’s judicial lien did not fix on a preexisting interest in the homestead held by Margaret Hilt. Consequently, the judicial lien in this case is not avoidable under § 522(f)(1) of the Bankruptcy Code.

Under § 522(c)(2)(B), exempt property remains liable for a properly filed tax lien.

O'Neil v. United States, Department of Internal Revenue (In Re O'Neil) · filed 1995-02-02(c)(2)(B)

The language of section ... 522(c)(2)(B) is unambiguous.

The court described § 522(c)(2)(B) as preserving liability of exempt property for qualifying tax-lien debts.

United States v. Uria · filed 1995-03-30(c)(2)(B)

Property exempted under Section 522 remains liable after the case for any prepetition debt secured by a tax lien, notice of which is properly filed.

Under § 522(c)(2)(A), exempt property remains liable for a debt secured by a lien that has not been avoided under federal bankruptcy law.

St. John Medical Center, Inc. v. Innis (In Re Innis) · filed 1995-05-16(c)(2)(A)

exempt property remains liable for a debt secured by a lien that is not avoided by various affirmative measures under Federal bankruptcy law.

Section 522(f) does not permit avoidance of a federal tax lien because a tax lien is neither a judicial lien nor a qualifying nonpossessory, nonpurchase-money security interest.

In Re Khoe · filed 2000-08-17§ 522(f)

A federal tax lien is neither a judicial lien nor a non-possessory, nonpur-chase money security interest.

Section 522(f) does not allow avoidance of a foreclosure judgment or statutory tax lien.

In Re Porter · filed 2007-07-18(f)

And neither a foreclosure judgment nor a statutory tax lien is avoidable under section 522(f).

A judicial lien may be avoided to the extent it exceeds the debtor’s equity after subtracting unavoidable encumbrances and the homestead exemption; because the debtor’s equity did not exceed the exemption, the entire lien was avoidable.

In Re Vizentinis · filed 1994-12-23(f)(1)

Under this interpretation, a judicial lien is avoidable to the extent that the lien exceeds the debt- or’s equity in the property less the homestead exemption. Stated differently, the judicial lien survives only to the extent that a debtor’s equity results in a surplus after deducting the homestead exemption.

Because the Ohio divorce decree created Mrs. Debolt’s separate pension interest before bankruptcy, the debtor had no interest in that portion when he filed, so § 522(f) did not permit avoidance of the award as a judicial lien.

Debolt v. Comerica Bank (In Re Debolt) · filed 1994-12-23(f)

In the instant case, the Ohio court created new interests before the bankruptcy was filed. ... Thus, when Debtor filed his bankruptcy petition, he had no interest in the portion of the pension that the state court awarded to Mrs. Debolt as her separate property.

A debtor may not use § 522(f) to avoid a statutory lien.

In Re Dickinson · filed 1995-08-15(f)

Thus, ah of the eases cited are in agreement, i.e., a debtor may not use § 522(f) to avoid a ... statutory ... hen.

A divorce-created equitable lien is not avoidable under § 522(f)(1)(A) when the debtor did not hold the relevant property interest before the lien attached.

Simons v. Simons (In Re Simons) · filed 1996-03-04(f)(1)(A)

The law of Oklahoma in this regard is so close to the state law relied upon in ... Sanderfoot ... that there is no basis for distinction. Accordingly, ... Sanderfoot ... is controlling in this ease, and Defendant cannot avoid Plaintiffs lien on her homestead.

A security interest that was nonpossessory when created remains nonpossessory for § 522(f)(2)(B) even if the creditor later repossesses the collateral under a default remedy.

In Re Vann · filed 1995-01-11(f)(2)(B)

Where the parties originally enter into a nonpossessory security agreement perfected by filing, a clause giving the secured party right to possess the collateral upon default does not render the security interest possessory within the meaning of 11 U.S.C. § 522(f)(2)(B) where the secured party repossesses the equipment by self-help or by judicial action.

The applicable state-law exemption and the property's value are determined as of the original petition date, even when the bankruptcy case is later converted to another chapter.

In Re William Hall Eleanor Hall, Debtors. James Rigby v. William Hall Eleanor Hall · filed 1995-01-17§ 522(b)(2)(A)

The filing date does not change when a debtor converts a case from one chapter to another. 11 U.S.C. Sec. 348(a). The property that the Halls claimed as exempt, its value, and the applicable Washington law are therefore determined as of the Chapter 11 filing date.

The right to avoid a judicial lien under § 522(f) is determined using the exemption law and facts applicable on the bankruptcy petition date.

In re Scott · filed 2015-02-17(f)

because lien avoidance is part and parcel of the exemption scheme, the right to avoid a judicial lien must also be determined as of the petition date.

Section 522(f) authorizes the debtor to avoid the PCA's nonpurchase-money, nonpossessory liens on farm machinery up to the applicable $10,000 exemption limit.

Matter of Towns · filed 1987-06-10§ 522(f)

WHEREFORE, based upon the foregoing facts and discussion and pursuant to 11 U.S.C. § 522(f), the court concludes the debtor is entitled to avoid the PCA liens on his farm machinery not to exceed a value of $10,000.00 in the aggregate as provided by Iowa Code section 627.6(12).

Section 522(f)(2)(B) permits a debtor to avoid a lien on farm implements used as tools of the trade; a temporary hiatus from farming does not defeat the avoidance, and § 101(17)'s farmer definition is not determinative.

In Re Schuette · filed 1986-03-05(f)(2)(B)

Section 522(f) refers to a debtor, not a farmer, therefore, the definition of farmer found in 11 U.S.C. § 101(17) should not be determinative for the purpose of avoiding a lien under § 522(f)(2)(B). ... The debtor has evidenced a clear intention to resume farming operations and has demonstrated that his hiatus in farming is but temporary. The court finds that defendants are farmers for the purpose of his claimed exemption under Minn.Stat.Ann. § 550.37, subd. 5 (West Supp.1986) and for the purpose of avoiding the creditor’s lien under 11 U.S.C. § 522(f)(2)(B).

The debtor spouse alone may claim exemptions in community property belonging to the bankruptcy estate, so a nondebtor spouse may not add a state homestead exemption when the debtor selected unrelated federal exemptions.

Burman v. Homan (In Re Homan) · filed 1990-03-13§ 522(b)

A nondebtor spouse may not claim a state homestead exemption in community property where the debtor spouse has scheduled a list of federal exemptions in unrelated property.

When a debtor properly asserts an exemption under § 522, the exemption must be allowed unless controlling law provides a basis for disallowance; equitable bad faith or prejudice alone is insufficient.

In re Arellano · filed 2014-09-26(b), (c), (k)

when a debtor properly asserts an exemption under section 522, it must be allowed unless the controlling law provides for disallowance.

Section 522 does not authorize a bankruptcy court to use equitable powers to deny an exemption or exemption amendment based on the debtor’s bad faith, fraud, or other misconduct.

Ellmann v. Baker · filed 2015-07-02

Because 11 U.S.C. § 522(b)(3)(A) allows a debtor to exempt equity from his residence and § 522(k) prohibits use of the exemption to pay “any administrative expense,” which the Supreme Court said the attorney’s fees “indubitably” were, it held that the bankruptcy court exceeded its inherent powers and violated the Code by ordering the surcharge. ... Accordingly, the Supreme Court concluded that the Code does not confer “a general, equitable power in bankruptcy courts to deny exemptions based on a debtor’s bad faith conduct” or “the debtor’s fraudulent concealment of [an] asset alleged to be exempt.” ... We therefore reject the trustee’s artificial delineation and hold that, under Siegel, bankruptcy courts do not have authority to use their equitable powers to disallow exemptions or amendments to exemptions due to bad faith or misconduct.

Section 522(l) makes a debtor’s exemption claim presumptively valid if no timely objection is filed, and places on the objector the burden to prove that the claimed exemption is improper.

Elaine M. Cole · filed 2022-04-15(l)

Absent any timely objection, a debtor’s claim of exemption is presumptively valid. 11 U.S.C. § 522(l). As the objector, the Trustee bears the burden of proving, by a preponderance of the evidence, that the Debtor’s claimed homestead exemption is improper. See Fed. R. Bankr. P. 4003(c); In re Shaw, 622 B.R. 569, 578 (Bankr. D. Conn. 2020).

Section 522 permits a debtor to claim property as exempt under the applicable exemption scheme, while § 522(l) gives creditors and the trustee an opportunity to object; failure to object waives contesting the exemption’s validity but does not immediately give the debtor possession.

In the Matter of Thomas R. SALZER, D/B/A TRS Automotive, Debtor-Appellant · filed 1995-06-14(b), (l)

However, the running of the thirty day period without objection does not mean that the debtor is entitled to possession of the property on the thirty-first day.

Section 522(f)(1)(A) requires a debtor seeking lien avoidance to show a substantive entitlement to exempt the property under § 522(b).

In Re Franklin · filed 1997-05-29(f)(1)(A)

For lien avoidance under § 522(f)(1)(A), those requirements include, as noted above, a substantive entitlement to an exemption under § 522(b).

A debtor may exempt property under § 522 only if the debtor has a property interest in it.

Turner v. DeKalb Bank (In Re Turner) · filed 1997-06-03

Pursuant to 11 U.S.C. § 522, a debtor may exempt certain property from property of the estate. “The right to claim property exempt presupposes that the debtor must have a property interest in that property.”

Section 522(g) limits exemption of property recovered by a trustee when the debtor voluntarily transferred and concealed it, but § 522(l) bars a challenge to an exemption when no timely objection is filed, and § 522(e)'s waiver protection applies to unsecured creditors rather than a trustee.

Moore v. Harrell (In Re Harrell) · filed 1997-07-10(g), (l), (e)

A debtor may not exempt transferred property recovered by a trustee if the debtor voluntarily transferred the property and concealed the transfer. 11 U.S.C. § 522(g) ... However, the Trustee’s failure timely to object to a claimed exemption bars a challenge to the exemption’s validity even though there is no basis for the exemption. 11 U.S.C. § 522(l)(b) ... The Debtor also claims that any waiver of his homestead exemption is invalid under 11 U.S.C. § 522(e) ... However, by its express terms, § 522(e) applies to unsecured creditors, not to a trustee.

A debtor who claims specific dollar amounts under § 522(d)(1) and § 522(d)(5) is limited to those amounts; the trustee need not object merely to the debtor’s scheduled property value.

Matter of Heflin · filed 1997-10-28§ 522(d)(1), § 522(d)(5), § 522(l)

Therefore, this court holds a trustee is not legally required to object to a debtor’s scheduled value relating to specific property.

Section 522(l) makes a sufficiently claimed exemption effective when the trustee fails to object timely.

Hovis v. Wiggins (In Re Wiggins) · filed 1998-03-19(l)

Based upon the language of Rule 4003 and its inteipretation by the Supreme Court, the Fourth Circuit Court of Appeals and other Circuit Courts as cited above, it is the finding of this Court that the Debtor sufficiently listed and claimed an exemption in the IRA and that the Trustee is now precluded from objecting by not filing a timely objection or timely requesting an extension of time to file an objection.

An exemption claimed in a Chapter 13 case and not timely objected to remains exempt, and a later-converted Chapter 7 trustee has no new opportunity to object absent amended schedules.

DiBraccio v. Ferretti (In Re Ferretti) · filed 1999-01-29§ 522(l)

During the course of the Chapter 13 case, debtor claimed the automobile accident as exempt, and because there was no objection to the exemption, the property was, in fact, exempt.

Section 522(l) requires a debtor to list exempt property, and the exemption becomes effective unless a party in interest timely objects under the bankruptcy rules.

In Re Boyd · filed 1999-12-21§ 522(l)

Bankruptcy Code section ... 522(l) ... requires debtors to list any property exempted under federal or state law, and Rule 4003(a) requires the exemptions to be listed on a schedule of assets pursuant to Rule 1007.

Section 522(l) makes property claimed as exempt exempt when no party in interest timely objects, and that failure bars later challenges to the exemption even in a motion to avoid a lien under § 522(f).

In Re Chinosorn · filed 2000-05-05(l)

After a review of the statutory scheme and precedent of which this court is bound, the court finds that a failure to timely object to a claimed exemption prevents a trustee or creditor from later objecting to the validity of the exemption, even with respect to lien avoidance motions under § 522(f) of the Bankruptcy Code. The Bankruptcy Code specifically states that a debtor “shall file a list of property that the debtor claims as exempt under subsection (b) of this section.” 11 U.S.C. § 522ffl. That section further states that “[ujnless a party in interest objects, the property claimed as exempt on such list is exempt.”

Section 522(l) makes property claimed as exempt exempt when no timely objection is filed, and under § 522(d)(5) that property is the debtor’s aggregate interest rather than merely the dollar amount listed.

In Re Peiman · filed 2000-06-13(l) and (d)(5)

Accordingly, this Court logically must conclude that when § 522(l) declares that the “property claimed as exempt is exempt”, the property claimed cannot be anything other than what the statute allows: the debtor’s “aggregate interest in any property”.

Section 522(l) makes property claimed as exempt exempt when creditors fail to timely object, and the exemption remains effective after conversion from Chapter 11 to Chapter 7.

In Re John Douglas Smith · filed 2000-12-19(l)

It is widely accepted that property deemed exempt from a debtor's bankruptcy estate revests in the debtor. See 11 U.S.C. S 522(l); ... Conversion from Chapter 11 to Chapter 7 does not create a new estate. See 11 U.S.C. S 348(a); ... Due to the Creditors' failure timely to object, the plan vested in Smith. ... The plan therefore remained exempt even after conversion of the bankruptcy proceedings from Chapter 11 to Chapter 7, and is no longer subject to the Creditors' right to object.

Property whose exemption is established under section 522(i) through the untimely-objection period cannot be treated as disposable income under section 1325(b) and remains protected from prepetition debts under section 522(c).

In Re Graham · filed 2001-01-26(i), (c)

operate to prevent a bankruptcy court from treating such exempt property as “disposable income” under § 1325(b).

Section 522(l) bars a trustee from challenging the validity of an exemption after the objection period, but does not bar a later challenge to the value of an interest listed at a nominal amount.

Addison v. Reavis · filed 1993-09-03(l)

This Court reads Taylor to bar the trustee from objecting beyond thirty days to the validity of an exemption which the debtor indisputably claimed, but not to prevent the trustee from challenging the debtor’s full exemption of an interest listed in her schedules as having a nominal value.

Section 522(l) provides that property claimed as exempt revests in the debtor when no party in interest timely objects, so a trustee cannot later administer that property for the estate.

Olson v. Anderson · filed 2006-10-20(l)

Returning now to the ease before me, the specific question is whether the Chapter 7 Trustee’s purported settlement with Defendants may be approved pursuant to Fed.R.BankrP. 9019(a). Debtors indicated in their amended Schedule C that they intended to exempt from the bankruptcy estate the undivided one-half interest in the hunting property they had owned as of the commencement of their case. Moreover, Debtors indicated in their amended Schedule C that, in their opinion, the value of that interest was the same as the value they claimed as exempt. Therefore, the Chapter 7 Trustee at the very least was on notice that it was more likely than not that Debtors intended to keep their interest in the hunting property as an in-kind exemption. If she was unsure, she should have asked. Otherwise, the Chapter 7 Trustee was required either to file an objection to the exemption claimed by the November 3 deadline or to secure before that date an extension of that deadline so that she could further investigate the value of the property claimed as exempt. Since the Chapter 7 Trustee did not choose either of these options, the one-half undivided interest in the hunting property that Debtors apparently claimed as an in-kind exemption transferred from the estate and revested with Debtors as soon as the November 3 deadline passed. 11 U.S.C. § 522(l) and Fed.R.Bankr.P.4003(b).

Section 522(l) makes a claimed exemption effective and removes the property from the bankruptcy estate when no party timely objects, including when the debtor clearly claims the entire property as exempt.

In re: Greg Anderson v. · filed 2007-11-07(l)

The Taylor decision is clear that when a debtor makes an unambiguous manifestation of intent to seek an unlimited exemption in property, then, absent a timely objection, that property is exempt in its entirety, even if its actual value exceeds statutory limits, and it is no longer property of the estate. ... We reject this argument. As the bankruptcy court correctly noted, there is nothing on the form Schedule C that alerts a debtor that the required way to assert an in-kind exemption is to list the value unknown and the exemption as 100%. To the contrary, the form which is entitled “Property Claimed As Exempt” simply asks a debtor to list the property claimed exempt and to place values on the exemption and the property. The Debtor complied with these instructions by specifying that the property claimed as exempt was a “½ interest in old cabin.” The Debtors stated that the Cabin property “may have a total value of about $30,000,” clearly an estimation of value, and that therefore, their one-half interest “would be $15,000.” (Appellant’s App. at 42.) Thus, it was clear that the Debtors were seeking to exempt their full interest in the Cabin property, which they believed had a value of $15,000. ... In summary, under the facts of this case, the bankruptcy court was correct in holding that the Cabin property was not property of the bankruptcy estate. As such, the court’s denial of the proposed settlement was appropriate.

Section 522(l) makes an exemption effective when an objectionable claim receives no timely objection, but it does not bar trustee control when the claim was not objectionable when made and the estate retained a simultaneous interest in the property.

White v. Brown (In Re White) · filed 2008-04-22(l)

The Golden rationale that there was nothing to which to object is similarly fatal to the debtor's argument based on 11 U.S.C. § 522( l ). If an objectionable claim of exemption is made and there is no timely objection, then the property is exempt under that section. Taylor v. Freeland & Kronz, 503 U.S. 638, 642-43, 112 S.Ct. 1644, 118 L.Ed.2d 280 (1992). But, here there was nothing objectionable about the claim of exemption in homestead sale proceeds at the time that claim was made. Moreover, the contention that § 522( l ) precludes the trustee from exercising control over the property is too great a leap because it does not account for situations in which the estate has an interest simultaneous with the debtor in property that is subject to exemption.

Section 522(l) makes a claimed exemption effective unless a party in interest objects; the objecting party bears the burden of showing that the exemption is improper.

In re: DeCarlos Waller v. · filed 2010-09-07(l)

Section 522(l) of the Bankruptcy Code provides that “[u]nless a party in interest objects, the property claimed as exempt . . . is exempt.” 11 U.S.C. § 522(l). The party objecting to the exemption (in this case, the Trustee) bears the burden of proving, by a preponderance of the evidence, that an exemption is not properly claimed. Fed. R. Bankr. P. 4003(c); In re Mann, 201 B.R. 910, 915 (Bankr. E.D. Mich. 1996). If the objecting party fails to carry her burden, the exemption will stand. In re Mann, 201 B.R. at 915.

Section 522(l) provides that property listed as exempt is exempt from the bankruptcy estate unless a party in interest timely objects.

Bone v. Taco Bell of America, LLC · filed 2013-07-24(l)

Pursuant to 11 U.S.C. § 522(Z), “[t]he debtor shall file a list of property that the debtor claims as exempt.... Unless a party in interest objects, the property claimed as exempt on such list is exempt.” 11 U.S.C. § 522(Z) (2006). ... Despite indications that the asserted exemption was invalid, therefore, it appears that Plaintiffs claim against Defendant was exempted from Plaintiffs bankruptcy estate.

Section 522(l) makes scheduled property exempt when no timely objection is filed, and a Chapter 7 trustee cannot later bring a transformed interest in that exempt property into the estate absent a statutory provision allowing it.

Hawk v. Engelhart (In Re Hawk) · filed 2017-09-05(l)

The situation is different in the Chapter 7 context. Section 1306(a)(1) is applicable only in Chapter 13 cases; no similar provision applies to Chapter 7 cases. Here, the Hawks filed for Chapter 7 bankruptcy and subsequently claimed an exemption for funds held in an IRA. No party in interest objected. The funds were unconditionally exempted because of their essential character as “assets held in . . . an individual retirement account.” TEX. PROP. CODE § 42.0021(a); see 11 U.S.C. § 522(l). Moreover, the Trustee could not “contest the validity of [that] exemption after the 30-day period.” Taylor, 503 U.S. at 639, 643–44. ... The property interest was “withdrawn from the estate” when the exemptions were allowed, Owen, 500 U.S. at 308, and there was no provision under which the Hawks’ subsequently acquired interests in amounts distributed from the IRA could become part of the estate. Accordingly, we hold that the bankruptcy court erred in ordering the Hawks to turn over the liquidated funds to the Trustee.

Under § 522(b)(1) and (l), property claimed as exempt ceases to be part of the bankruptcy estate after the period for objecting to the exemption expires, if no objection is filed.

In re Odell · filed 2018-01-30(b)(1) and (l)

Hence, after expiration of the period within which to object to Debtor’s claimed exemption, Debtor’s interest in the Property was no longer part of the bankruptcy estate.

Section 522(l) makes property claimed as exempt exempt when no party in interest timely objects, but the exemption does not create or change the underlying property interest under non-bankruptcy law.

Roadcap v. Harrisonburg Printing & Graphics, LLC (In re Roadcap) · filed 2018-08-23(l)

Because Mr. Roadcap claimed his interest as exempt property held as tenants by the entireties and no one timely challenged it, Mr. Roadcap removed his interest from the bankruptcy estate. ... The failure to timely object to the claim of exemption barred his chapter 7 trustee and creditors from challenging the act to remove the asset from administration in the bankruptcy case. ... The act did not, however, confer a property interest, or convert a property interest, under non-bankruptcy law.

Section 522(l) makes a claimed exemption effective when no party in interest objects, regardless of whether the exemption properly follows the applicable exemption statute.

McDowell v. Estate Information Services, LLC · filed 2021-09-14(l)

Because there were no objections, the claimed exemption is allowed under § 522(l), regardless of whether the exemption properly follows West Virginia’s exemption statute.

Section 522(l) makes a claimed exemption effective when an interested party fails to object within the time allowed by Rule 4003(b).

DuVall v. County of Ontario · filed 2023-09-29(l)

Applying the language of Rule 4003(b), read together with Sections 101(32) and 522(l), makes clear that the Annuity is exempt due to the County’s failure to timely object.

Section 522(l) makes a claimed exemption effective when no timely objection is filed, so long as the debtor has a good faith statutory basis for claiming it.

Clark v. Kazi (In Re Kazi) · filed 1991-02-04(l)

The objecting parties, in effect, ask that the Court fully examine the merits of debtors’ exemptions when no timely objections have been filed. This the Court will not do. Debtors need only establish a good faith statutory basis for claiming their exemptions.

Section 522(l) exempts property only to the extent claimed when no one objects; listing a dollar amount does not exempt the debtor’s entire interest.

Bankr. L. Rep. P 75,890 in Re Joseph Kahan, Debtor. David Seror v. Kahan · filed 1994-07-18(l)

Mr. Kahan initially claimed only a $45,000.00 exemption, meaning that the Trustee’s failure to object did not cause either the entire Property or Mr. Kahan’s joint tenancy interest to become exempt.

Section 522(7) makes claimed property exempt when no party in interest objects.

Matter of Wiesner · filed 1984-06-26(7)

Once exemption is claimed in particular property, such property is exempt if no party in interest objects. 11 U.S.C. § 522(7).

Section 522(l) makes a claimed exemption effective when no party in interest objects, giving the debtor a property interest in the exempt lawsuit and standing to sue.

American General Finance, Inc. v. Tippins (In Re Tippins) · filed 1998-05-01(l)

Under the Code, a party in interest must object to a claim of exemption; failure to do so results in the property being exempt.

Section 522(l) makes property claimed as exempt exempt if no party in interest objects; an unchallenged exemption cannot later be contested through a state court citation restraint.

In Re Fridge · filed 1999-09-22(l)

Section 522(l) provides that “unless a party in interest objects, the property claimed as exempt on such list is exempt.” ... If payments in connection with a bankruptcy case came from funds listed as exempt by the debtor and not successfully challenged under Rule 4003(b), the exemption becomes incontestable under federal law and there should be no basis for contempt proceedings in connection with the citation restraining order.

Section 522(l) makes property claimed as exempt exempt when no party in interest objects within the allowed period; conversion does not reopen that period.

In Re Page · filed 1999-10-29(l)

This conclusion is bolstered by the self-executing language of section 522(Z), which provides that “[u]nless a party in interest objects, the property claimed as exempt ... is exempt.”

Property claimed as exempt becomes exempt when no timely objection is filed, and conversion from Chapter 11 to Chapter 7 does not reopen objections to that property.

Smith v. Kennedy · filed 2000-12-19(l)

Smith claimed the retirement plan as exempt under section 522(Z). Due to the Creditors’ failure timely to object, the plan vested in Smith. Smith’s creditors have not pointed to any mechanism in the Code for bringing the plan back into the estate. The plan therefore remained exempt even after conversion of the bankruptcy proceedings from Chapter 11 to Chapter 7, and is no longer subject to the Creditors’ right to object.

Under the opinion’s application of § 522(i), a debtor receives a claimed homestead exemption when no party objects within the prescribed time.

In Re Novak · filed 2006-10-17(i)

Pursuant to 11 U.S.C. § 522(i) and Rule 4003(b) of the Federal Rules of Bankruptcy Procedure (“FRBP”), unless a party in interest objects to the exemption claimed under Schedule C within 30 days after the meeting of creditors held under 11 U.S.C. § 341(a) is concluded, the property claimed as exempt on such schedule is exempt. The objecting party, if any, has the burden of proving that the exemption is not properly claimed. FRBP 4003(c). Because no objection has been filed with respect to the Debtor’s claim of a homestead exemption within the time limits set forth under FRBP 4003(b), the Debtor is entitled to $10,000 from the 50% of the proceeds arising from the sale of the Property that represents his interest in the Property before the remainder of such proceeds is distributed to BONY.

Section 522(l) allows property claimed as exempt to revest in the debtor when the trustee fails to object.

Olson v. Anderson · filed 2006-11-28(l)

The problem arose because Debtors had previously claimed their interest in the hunting property as exempt and the Chapter 7 Trustee had not objected. Consequently, that interest had long ago revested with Debtors by operation of Section 522(l).

Section 522(l) makes property claimed as exempt exempt when no timely objection is filed, even if the claim lacks a valid basis.

O'Connor v. Leone (In re Leone) · filed 2011-12-09(l)

The objection, however, has been rendered moot because the annuity was removed from the bankruptcy estate during the chapter 13 proceeding, long before the Trustee was appointed, by the Debtors’ exemption claim to which no timely objection was filed.

The court held that exemption rights are determined on the petition date under § 522(b) and applicable Montana law.

Martinson v. Michael (In Re Michael) · filed 1995-06-15(b)

Therefore, this Court holds that on the petition date the Debtors did not have a valid homestead exemption under § 522(b) and Montana law.

Section 522(b) determines exemptions as of the bankruptcy petition date, not the date the debt was incurred.

In Re Rester · filed 1984-09-07(b)(2)(A)

Thus, the appropriate date for determining exemptions is the date of filing, not the date of indebtedness.

Section 522(b)(2)(A) fixes the applicable state or local exemption law by reference to the petition filing date, including when a Chapter 13 case is later converted to Chapter 7.

In Re Ginger Lea Marcus, Debtor. Ginger Lea Marcus v. Sally J. Zeman, Chapter 13 Trustee M. Stephen Peters, Chapter 7 Tr · filed 1993-07-26(b)(2)(A)

When read together, these two code provisions require a determination that the law applicable at the date of filing controls exemptions. ... We hold that the law in effect on the date of filing controls what exemptions will be available to a debtor converting from Chapter 13 to Chapter 7.

Section 522 requires exemption eligibility to be determined as of the date the bankruptcy petition is filed, so later changes do not defeat an exemption valid on that date.

In Re Lantz · filed 2011-03-09(b)(2)(A)

In accordance with Section 522, “exemptions are determined as of the date the bankruptcy petition was filed.”

A debtor’s real-estate exemption is governed by the state or local law applicable on the petition date, and that exemption determines whether a judicial lien impairs an exemption under § 522(f).

In re Freeman · filed 2014-10-27(b)(2)(A), (f)(1)(A)

A debtor’s claim of an exemption in real estate is governed by state or local law that is applicable on the date of the filing of the petition.

Section 522(b)(3)(A) determines a debtor’s available state-law exemptions as of the bankruptcy petition filing date in a Chapter 7 case with debts incurred both before and after a change in exemption limits.

In re Middleton · filed 2016-01-15(b)(3)(A)

The undersigned judges find that, in Chapter 7 cases with a “mix” of debts which pre-and postdate the change in exemptions, the approach which complies with the Bankruptcy Code and is most consistent with other law is to apply the exemption limits in effect at the time of the bankruptcy petition, for several reasons.

Section 522(b) determines available exemptions as of the petition filing date, even if a Chapter 13 plan is later modified.

Hollytex Carpet Mills v. John v. Tedford and Viola J. Tedford · filed 1982-10-20(b)

The court found that a debtor may exempt any property that is exempt under federal, state or local law on the date of filing of the petition. 11 U.S.C. § 522(b). The petition commences the case. 11 U.S.C. § 101(31). The fact that a modification was filed at a later date does not change the effective date of the plan for the purpose of electing exemptions. ... We find no merit to appellant’s arguments, and accordingly affirm pursuant to Rule 14 of the Rules of this court on the basis of Judge Waters’ opinion.

Section 522(b)(3)(A) determines a debtor’s entitlement to exemptions as of the bankruptcy filing date.

Sender v. Golden (In re Golden) · filed 2015-03-16(b)(3)(A)

It is well established that entitlement to exemptions is determined on the date of bankruptcy. See 11 U.S.C. § 522(b)(3)(A); In re Mayer, 167 B.R. 186, 188 (9th Cir. BAP 1994).

Section 522(b)(2)(A) makes the state exemption law in effect when the petition was filed applicable after a Chapter 13 case converts to Chapter 7.

In Re Weed · filed 1998-04-15(b)(2)(A)

Thus, the law in effect on the date of filing controls what exemptions will be available to a debtor who converts from Chapter 13 to Chapter 7.

Section 522(b)(1) is one of the mutually exclusive exemption choices available to the debtor.

In Re Van Nostrand · filed 1995-06-15(b)(1)

This section requires the debtor to choose between subparagraphs (b)(1) and (b)(2) of § 522.

Section 522(b)(1) permits a debtor to choose either the federal exemptions or applicable state exemptions, unless the state has opted out of the federal exemption scheme.

In Re Doyle · filed 1997-06-17§ 522(b)(1)

Under the Bankruptcy Code, either the applicable state or the federal exemptions may be selected pursuant to 11 U.S.C. § 522 unless a state chooses to “opt out” of the federal exemption scheme.

Section 522 does not permit Chapter 13 debtors to exempt plan payments paid to the trustee for distribution to creditors after confirmation.

Kerney v. Capital One Financial Corp. (In Re Sims) · filed 2002-05-08

When this criteria is applied to the facts of the case at hand, it is clear that the first situation does not exist: the overpayments can not be exempted by the chapter 13 debtors.