- Case Type:
- Case Status:
- No. CC-18-1144-KuTaF, 2019 WL 408628 (9th Circuit, Jan 29,2019) Not Published
- BAP for 9th Circuit affirmed ruling of bankruptcy court (C.D. Cal.) granting chapter 7 trustee's sale motion over debtor's objection. Debtor waived appeal of disbursement of sale proceeds after failing to appeal bankruptcy court's order authorizing disbursement. BAP could not revisit appropriateness of distribution of proceeds without payment of debtor's homestead exemption. Regardless, debtor was not entitled to claim homestead exemption in the sale proceeds. Debtor could not claim homestead exemption in consensual secured creditor's assignment of half interest in lien to estate.
- Procedural context:
- Trustee moved to sell real estate over debtor's objection. Bankruptcy court approved compromise between trustee and Omaha Bank. Debtor appealed to BAP for 9th Circuit.
- Debtor was president of corporation ("Sesa"). Sesa borrowed $937K from Omaha Bank. Debtor guaranteed Sesa's obligation. Debtor's guaranty was secured by deed of trust against her homestead. Sesa defaulted. Debtor filed a chapter 7 petition. Trustee moved to sell homestead property and distribute proceeds to secured parties. As part of transaction, Omaha Bank assigned a half-interest in its lien to the bankruptcy estate. Trustee moved for approval of the sale, including approval of distribution of proceeds, with estate receiving $160,000. Debtor claimed homestead exemption in the proceeds.
- Kurtz, Taylor, Faris
United Bank v. Buckingham
Summarizing by Shane Ramsey
2857 in the system
13 Being Processed