|
Homestead
Homestead Exemption - California
This is an interesting case involving several issues. The issue of trustee's attorney's fees is presented in "Double-Dipping" under the section titled "Real Cases."
In the decision presented on this page, the debtor filed appeal to the bankruptcy court's order denying her statutory homestead exemption. Bankruptcy Judge Vincent Zurzolo entered order denying the debtor's homestead exemption on the trustee's argument that the debtor did not own the property.
The property was deeded to a living trust, and the Trustee of the trust is not the debtor.
After getting the court order denying the debtor's statutory homestead exemption, Chapter 7 trustee Carolyn A. Dye, through her attorney Anthony Friedman, proceeded to get order from the bankruptcy court to sell the property as property of the debtor's bankruptcy estate.
In this case, we learned that the bankruptcy trustee's attorney coerced the Trustee of the Cinderella Living Trust to quit claim the property to Chapter 7 trustee Carolyn Dye. These facts are evidenced in the attorney's billing presented under "Double-Dipping." Based on information, the debtor is one of several beneficiaries in the living trust. However, bankruptcy trustee Dye sold the property free and clear of all interests.
On August 10, 2004, in an unpublished decision, the Bankruptcy Appellate Panel for the Ninth Circuit reversed the order of the bankruptcy court on the homestead exemption. Based on information, as of June 1, 2005, Chapter 7 trustee Carolyn A. Dye has not distributed the debtor her statutory homestead exemption. Based on information, as though a vindictive action due to having his decision overturned, Bankruptcy Judge Vincent Zurzolo denied the debtor's motion for the Chapter 7 trustee to show cause why she should not be held in contempt of court for failing to distribute the debtor's homestead exemption.
Decision opens in Adobe Reader.
|