Sweeden v. Bertola (In re Bertola)

Sweeden v. Bertola, Case No. 11-29140 (B.A.P. 10th Cir. March 12, 2013) (unpublished)
A debtor can convert cash proceeds from the sale of his home to non-cash property and such non-cash property retains its character as proceeds of the homestead for exemption purposes under Colorado’s “proceeds statute.” All that is required is that the proceeds must be traceable to the non-cash property and the debtor must keep the non-cash property separate and identifiable and use it to purchase a home within two years of the sale failing which, the homestead exemption is lost.
Procedural context:
Trustee appealed the Bankruptcy Court’s denial of her objection to the debtor’s claim that shares of stock purchased from the proceeds of the sale of debtor’s home were exempt under Colorado’s “proceeds statute.” Reviewed de novo.
Prior to filing bankruptcy, the debtor sold his home and deposited a portion of the proceeds into a brokerage account. He used the proceeds to purchase shares of stock and when he filed bankruptcy, he claimed the stock as exempt under Colorado’s “proceeds statute” found at CRS 38-41-207. The Bankruptcy Court found that the debtor had met the statute’s separate and identifiable requirements which was not argued on appeal.
Karlin, Somers, and Mosier (sitting by designation).

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!

About us in numbers

3335 in the system

3214 Summarized

1 Being Processed