In re Wengerd

Summarized by Laura Bartell , Wayne State University Law School
14 years 8 months ago

Citation:

2011 Fed. App. 0004P (6th Cir. BAP June 15, 2011)

Tag(s):

6th Circuit

Ruling:

Debtors were entitled to claim a homestead exemption for a residence that was their homestead on the date the bankruptcy petition was filed, despite the fact that Debtors sold the residence pursuant to contract four days after filing. A debtor who has a residence on the date of the bankruptcy filing does not have to have an intention to continue to occupy that residence in the future to claim a homestead exemption under Ohio law. Order of the bankruptcy court was reversed and remanded.

Procedural context:

Appeal from order of bankruptcy judge sustaining trustee's objection to Debtors' claimed homestead exemption

Facts:

On the date of the bankruptcy filing, Debtors resided in a home which they had previously contracted to sell. The sale closed four days after the filing. Debtors claimed the homestead exemption under Ohio law for the home, and the trustee objected. The bankruptcy court upheld the objection, finding that a debtor cannot claim a homestead exemption under Ohio law if debtor has a clear intention to abandon the property immediately post-petition. The Bankruptcy Appellate Panel reversed.

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