11 U.S.C. § 522

Section 522(l) requires an exemption to be claimed; failure to claim it waives the exemption.

Allnutt v. Associates Leasing, Inc. (In Re Allnutt) · filed 1998-03-20(l)

The failure of both the debtor and the plaintiff to claim exemptions of so-called “entireties property” from administration by the Chapter 11 trustee waived their right to any such exemptions.

Section 522(f)(1)(B)(i) does not allow a debtor to avoid a lien on a homestead because real property is not a household good.

In re Kemper · filed 1998-09-30(f)(1)(B)(i)

This Court finds that a homestead cannot be classified as a household good under § 522(f)(l)(B)(i), and therefore, Debtors may not avoid LNB’s lien under § 522(f)(l)(B)(i).

Section 522(c) protects exempt property from levy but does not prevent a court from considering that property when assessing a debtor’s ability to pay under § 523(a)(15)(A).

Smith v. Smith (In re Smith) · filed 1998-12-30(c)

Section 523(a)(15)(A), however, asks whether a debtor has the ability to pay, either from income or property, a nonsupport marital obligation. Exemptions have no impact on what a debtor can afford to pay. Exemptions are only relevant when a creditor seeks to compel a recalcitrant debtor to pay a debt.

Section 522(d)(1) permits a debtor to claim a homestead exemption when military service keeps the debtor away from the home, because that absence alone does not abandon the homestead.

In Re Anderson · filed 1999-10-12(d)(1)

Considering these decisions and those interpreting § 522(d)(1) discussed above, this court finds that absence from a homestead due to service in the military is involuntary and compelled and that such absence, in and of itself, does not constitute abandonment of the serviceman’s homestead under § 522(d)(1).

Section 522(b) permits a debtor to claim exemptions available to that debtor individually, but does not permit the debtor to claim exemptions personal to a non-filing spouse.

In Re DeHaan · filed 2002-03-20(b)

In conclusion, Debtor is entitled to claim and will be allowed those exemptions available to him as an individual under § 522(b) and I.C. § 11-605. He is not allowed to assert in this case exemptions which are personal to his non-debtor spouse.

Section 522(b) lets a spouse who files alone select the applicable set of exemptions for community property.

In re Diaz Collazo · filed 2015-01-09(b)

If only one spouse files for bankruptcy, the filing spouse has the right to select exemptions. ... As previously discussed, the Debtor may claim the full homestead exemption in these proceedings on behalf of such conjugal partnership.

Section 522(b)(1) allows a debtor to exempt property of the estate, but spending the property before the exemption is allowed leaves nothing to exempt.

In Re Trudell · filed 2010-02-19(b)(1)

Section 522(b)(1) provides in pertinent part that “an individual debtor may exempt from property of the estate” certain specified items. ... Therefore, the court agrees with Trustee that the Trudells no longer have anything to exempt. However, it seems that the appropriate relief in this instance is not, as Trustee requests, a denial of the exemption claimed but rather simply a recognition that Trustee’s objection has been rendered moot by the Trudells’ premature expenditure of the refund claimed.

Section 522(d)(11)(D) permits an exemption for a spouse’s loss of consortium claim, but settlement proceeds are exempt only if they satisfy that spouse’s asserted claim.

In re Graves · filed 2012-01-24(d)(11)(D)

Consistent with this precedent, this Court acknowledges that a spouse may apply a § 522(d)(ll)(D) exemption to a loss of consortium claim. However, as addressed by the Court in In re Shumac, 425 B.R. 139, 144 (Bankr.M.D.Pa.2010) for a debtor to apply a § 522(d)(ll)(D) exemption to specific monies received in satisfaction of a loss of consortium claim, a debtor must have asserted the loss of consortium claim and the monies sought to be exempted must constitute the proceeds of a settlement of or judgment on the loss of consortium claim.

Section 522 does not exempt an entire asset when a debtor lists the value of the claimed exemption as zero; the trustee need not object to preserve the estate’s interest in its remaining value.

Lentz v. Myers (In re Myers) · filed 2013-02-14(l)

If the Debtors were seeking to exempt the entire asset, the Debtors were under a duty to state so clearly in order to put the Trustee on notice of their intention. Placing a value of 0.00 on their claimed exemptions fails to do so.

Section 522(f)(1)(A) permits a debtor to avoid a judicial lien using an exemption claimed after reopening a closed case when no creditor prejudice or debtor bad faith is shown.

In re: Kathy Ann Green · filed 2013-08-12(f)(1)(A)

The bankruptcy court erred when it found that Creditor was prejudiced by Debtor’s delay in claiming the exemption and acting to avoid Creditor’s lien. In the absence of any evidence of such prejudice, it was error for the bankruptcy court to deny Debtor’s motion. Moreover, because the remaining requirements of a § 522(f)(1)(A) have been satisfied, no issue remains to be resolved in order to avoid Creditor’s lien.

Section 522(c) prevents a court from denying an exemption on purely equitable grounds without a statutory basis.

In re Franklin · filed 2014-03-12(c)

Allowing the TRUSTEE’S ... objection would contravene section 522(c)’s mandate that exempted property is “not liable” for debts included in the bankruptcy case. Therefore, applying Law v. Siegel, this Court has no authority to deny the exemption on the grounds asserted by the TRUSTEE.

Section 522(d)(5) allows an exemption for a check only to the extent it has collectible value; it does not exempt funds the debtor fraudulently transferred to another person.

In re Hansen · filed 2014-05-09(d)(5)

The debtor may exempt a check, but that check will have value only to the extent of collection.

Section 522(g)(1) does not bar an exemption after a voluntary transfer unless the trustee recovers the property; avoiding a transfer of property already in the estate does not itself amount to recovery.

In re Mickens · filed 2017-10-20(g)(1)

In this case, although the Trustee successfully avoided the prepetition transfer of the Property as a fraudulent conveyance, the court cannot conclude that the Trustee recovered the Property for purposes of § 522(g). The Trustee did not “win back” property that had been transferred away and did not add property that was not in the estate when the case was filed.

Section 522(b)(3)(A) applies the homestead exemption in force on the petition date in a mixed debt Chapter 13 case.

Redstone Fed. Credit Union v. Whited · filed 2018-03-27(b)(3)(A)

A debtor in a mixed debt Chapter 13 bankruptcy case is entitled to the homestead exemption in force on the date the debtor files her bankruptcy petition.

Section 522(b)(4)(B)(ii)(II) permits an exemption for a retirement plan that fails substantial compliance with tax law if the debtor shows he was not materially responsible for the failure.

Chorches v. Jie Xiao (In re Jie Xiao) · filed 2018-08-22(b)(4)(B)(ii)(II)

Section 522(b)(4)(B)(ii)(II) provides that even if a plan is not in substantial compliance, Mr. Xiao's interest in the funds may still be exempt if he demonstrates that he is not materially responsible for that failure. ... As Mr. Xiao actively managed, supervised, and decided the affairs of the Plan as employer, manager, and co-trustee, he is materially responsible for its failure to comply with the pertinent sections of the IRC.

Sections 522(c) and (k) protect exempt homestead sale proceeds from prepetition debts and administrative expenses even when a state reinvestment deadline expires after the bankruptcy filing.

In re Rockwell · filed 2018-08-23(c), (k)

Applying the partial snap-shot view and thus permitting the expiration of exemptions postpetition would create a subset of ephemeral exemptions which impermissibly would allow previously exempt property to be liable for pre-petition debts and administrative expenses, in contravention of § 522(c) and § 522(k).

Section 522(b) permits an applicable homestead exemption to reach equity created after the bankruptcy filing, even when the home had no equity at filing.

Stark v. Pryor · filed 2022-06-28(b)

Therefore, if the property value increases past the amount of the lien, equity can be created and may become subject to any applicable exemptions. ... By their nature, carve-out arrangements do the same thing; the secured creditor’s agreement to accept less money upon a sale creates equity in the home where none existed before.

Section 522(c) preserves a properly claimed New York homestead exemption in proceeds from a voluntary postpetition sale when the debtor owned and occupied the home on the petition date.

In re Ward · filed 2018-12-27(c)

Suitably, § 522(c) advances the bankruptcy "fresh start" policy by safeguarding the New York homestead exemption in the proceeds from a voluntary postpetition sale provided a debtor owned and occupied her home on the petition date.

Section 522(c) protects properly exempt property from prepetition student loan debt unless a statutory exception, such as fraud under § 522(c)(4), applies.

Schatz v. Access Group, Inc. · filed 2019-07-26(c)

Applying these principles of statutory construction to the issue before us supports the positions advocated by Schatz, namely, that by explicitly permitting exempt assets to be liable for pre-petition student loan debt incurred through fraud under § 522(c)(4), Congress did not intend to allow creditors to access exempt assets for payment of pre-petition student loan debt in the absence of such debtor fraud.

A claimed exemption for future earnings compensation in a lump-sum settlement is presumed valid, and the trustee must prove its invalidity by a preponderance of the evidence.

Michael Allen Holley · filed 2019-09-09(d)(11)(E)

A debtor’s claim that a portion of such a settlement is exempt under Section 522’s “future earnings” provision is presumed valid; and to prevail in an objection to an exemption, the trustee must prove, by a preponderance of the evidence, that the exemption is invalid.

Section 522(c)’s fresh start protection overrides state law limits that would strip a properly claimed exemption after filing.

HULL v. ROCKWELL · filed 2019-09-24(c)

Nevertheless, even if the Court viewed this case as one involving the interpretation of the conditional exemption under section 4422(1)(C), the Court agrees with the Bankruptcy Court’s conclusion that “such a result is not only permitted but required,” given that “fresh start principles promulgated in § 522(c) override state law exemption limitations, even definitional limitations . . ..” Mem. of Decision at 14-15 (quoing In re Leicht, 222 B.R. 670, 680 (B.A.P. 1st Cir. 1998)).

Section 522(f) does not permit a debtor to avoid a lien omitted from a confirmed Chapter 13 plan when the lienholder lacked notice of the case and plan.

Brian Walter Ohm · filed 2020-07-31(f)

Treatment of Mr. Miller’s lien was clearly something that should have been addressed through the plan and was not. To raise it now violates not only due process principles, but also raises res judicata concerns. Therefore, the court will deny Debtor’s motion to avoid lien under 11 U.S.C. § 522(f).

A debtor who elects federal exemptions and ambiguously also claims a tenancy-by-the-entirety exemption under § 522(b)(3)(B) may have that exemption disallowed.

Atkinson, Trustee v. Paturu · filed 2021-01-15(b)(3)(B)

For the reasons set forth above, because the amended exemptions are ambiguous, this case is distinguishable from Taylor, and the exemption on the Property under section 522(b)(3)(B) must be disallowed.

Section 522(d)(12) does not exempt IRA contributions above the annual limit when those contributions are not tax exempt.

Sharon S. Brainard · filed 2023-05-25(d)(12)

The excess contributions were not and are not now tax-exempt under IRC § 408(a) and cannot be exempted in the bankruptcy case by using § 522(d)(12).

Section 522(f)(1)(A) places the burden on the debtor to prove entitlement to judicial lien avoidance.

Thomas Supanchick · filed 2023-08-24(f)(1)(A)

Under § 522(f)(1)(A), the debtor bears the burden of proving he is entitled to the lien avoidance.

Section 522 permits exemptions from a bankruptcy estate but does not independently exempt property from a state court levy.

Silas v. Arden CA2/1 · filed 2021-02-01

Finally, to the extent Arden argues that federal section 522 provides an independent legal basis for exempting the IRA in state court debt collection proceedings even if he did not successfully exempt the IRA from his bankruptcy estate, Arden is incorrect.

A debtor with an undisputed personal injury exemption has a sufficient interest in the claim to bring suit while the bankruptcy estate remains open.

Szyszlo v. Akowitz · filed 2012-03-22(d)(11)(D)

In this case, having an undisputed exemption for the potential lawsuit, plaintiff had standing and was a proper party to bring this suit.