Danduran v. Kaler (In re Danduran)
- Citation:
- Danduran v. Kaler, No. 10-6042 (B.A.P. 8th Cir. 2010).
- Tag(s):
-
- Ruling:
- A debtor may engage in pre-bankruptcy planning to convert non-exempt assets to exempt assets if the record shows that the debtor's conversion was absent of fraudulent intent.
- Procedural context:
- This case was before the United States Bankruptcy Appellate Panel for the Eight Circuit on appeal from the United States Bankruptcy Court, District of North Dakota. The lower court's decision was reversed.
- Facts:
- The Debtor sold their homestead and after paying off the mortgage put the proceeds of $83,139.62 into a savings account. The savings account was opened specifically for the purpose of depositing the proceeds from the sale of the home. The debtor also deposited $1,000 from the buyers down payment and $3,079.04 which was refunded from the debtor's house insurance policy. Home furnishings with an approximate value of $7,700 were sold with the home.
The Debtor subsequently filed for Chapter 7 bankruptcy and claimed all of the money in the savings account was exempt under the homestead exemption. The trustee objected to the exemption claim with regards to the home furnishings valued at $7,700.
- Judge(s):
- Judges Federman, Venters and Saladino
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