Loventhal v. Edelson
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 16-1290 (7th Circuit, Dec 21,2016) Published
- Tag(s):
- Ruling:
Tenancy by the entirety property transferred to a trust is exempt, pursuant to 522(b)(3)(B), because, applicable state law, the Illinois Joint Tenancy Act, provides that such property is still deemed to be a tenancy by the entirety notwithstanding the trust transfer. In dicta, the Court also stated that the creditor's failure to object to or appeal confirmation of the debtor's plan did not moot the appeal as a chapter 13 plan is still subject to amendment post-confirmation.
- Procedural context:
Affirming the decision of the District Court for the Northern District of Illinois and the Bankruptcy Court for the Northern District of Illinois, overruling a creditor's objection to the debtor's exemption of property pursuant to 522(b)(3)(B).
- Facts:
Mrs. Edelson and her husband owned a residence in Chicago as tenants by the entirety. Seven months prior to Mrs. Edelson filing a chapter 13 petition, they transferred the property to the husband's living trust. The transfer documents stated the property was held by the Edelsons as tenants by the entirety, but granted Mr. Edelson certain rights inconsistent with a tenancy by the entirety. Mrs. Edelson filed a chapter 13 bankruptcy case and sought to exempt her interest in the property pursuant to 522(b)(3)(B). Her ex-husband, Mr. Loventhal, a creditor of Mrs. Edelson, objected to the exemption of the property.
- Judge(s):
- Posner, Kanne, Sykes
