- Williamson v. Murray (In re Murray), 10th Cir. Court Appeals, No. 14-3054 (BAP No. KS-13-034) (BAP) November 18, 2014
- The 10 Circuit Court of Appeals affirmed the ruling of the Bankruptcy Appellate Panel (“BAP”) for the Tenth Circuit and the bankruptcy court which rejected a Chapter 7 trustee’s challenge, to a Kansas statute permitting debtors in bankruptcy to exempt certain tax credits, often referred to as Earned Income Credits (“EICs”), from their bankruptcy estates.
- Procedural context:
- A chapter 7 debtor exempted her tax refund using state bankruptcy exemptions. The Chapter 7 trustee filed an objection challenging the exemption, arguing that Kan. Stat. § 60-2315 is unconstitutional and preempted. The bankruptcy court overruled the objection and the Tenth Circuit BAP unanimously affirmed. The Chapter 7 trustee now appeals to this court.
- Connie Rae Murray filed for Chapter 7 bankruptcy protection on October 2, 2012. Her filings listed her expected state and federal EICs as exempt pursuant to Kan. Stat. § 60-2315. That statute provides: An individual debtor may exempt earned income and other tax credits from the bankruptcy estate. Murray expected her total EIC refund to be $2,686, of which $2,025.51 would have been included in the estate had it not been exempted under § 60-2315. The Chapter 7 trustee filed an objection challenging the exemption, arguing that § 60-2315 is unconstitutional and preempted. The bankruptcy court overruled the objection and the Tenth Circuit BAP unanimously affirmed.
- KELLY, LUCERO, and HARTZ, Circuit Judges
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