Thaw v. Moser

Citation:
14-40108
Tag(s):
Ruling:
Trustee can force sale of the entire homestead over objection of non-debtor spouse. The sale is not an unconstitutional taking because the property was acquired after BAPCPA went into effect and the property could be used to pay debts of debtor husband. Non-debtor spouse was aware of judgment against debtor when they purchased the property and a sale of the property would not be a gratuitous confiscation. Bankruptcy court denied the debtor's homestead exemption because he used funds to purchase the property in a manner that hindered, delayed, or defrauded his creditors.
Procedural context:
Appeal from the U.S. District Court for the Eastern District of Texas
Facts:
Debtor had failed business. Former partner paid off business debts and sued debtor for contribution. Debtor and spouse contracted to buy house and took two years to close. During this time they paid more than twice the amount of rent each month. Shortly after closing, the debtor filed for bankruptcy. Court found extra payments hindered and defrauded creditors and denied homestead exemption. Court also granted trustee''s motion to sell and the non-debtor spouse appealed.
Judge(s):
King, Graves, and Higginson

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