Lopez v. Gill (In re Lopez)

Summarized by David Hercher , U.S. Bankruptcy Court, District of Oregon
10 years 5 months ago

Citation:

In re Lopez, No. CC-14-1450-TaKuPe (9th Cir. B.A.P. Sep. 3, 2015).

Tag(s):

Ruling:

Debtor’s receipt of workers’ compensation disability benefits did not by itself establish her disability entitling her to a California enhanced homestead exemption. Unpublished memorandum.

Procedural context:

Individual chapter 7 debtor claimed exemptions in her home and several vehicles. The bankruptcy court sustained the trustee’s objections to the exemptions. On appeal, the B.A.P. affirmed.

Facts:

A California enhanced homestead exemption is available to a person who is “physically or mentally disabled who as a result of that disability is unable to engage in substantial gainful employment.” Cal. Code Civ. P. § 704.730(a)(3)(B). Debtor offered no evidence of her disability at the petition date. Also, under the exemption statute, there is a rebuttable presumption of inability to engage in substantial gainful employment if a debtor receives disability insurance benefit payments under Title II or supplemental security income payments under Title XVI of the federal Social Security Act. But here, debtor offered evidence only of her postpetition receipt of workers’ compensation disability benefits. Because such a disability may be temporary and based on a less-than-total disability that merely impairs the ability to work, the workers’ compensation benefits did not per se demonstrate that she was precluded from substantial gainful employment as a result of a disability. She failed to offer evidence to support her other exemption claims at issue.

Judge(s):

Laura S. Taylor and Frank L. Kurtz, Bankruptcy Judges, and Elizabeth L. Perris, United States Bankruptcy Judge for the District of Oregon, sitting by designation.

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