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Michael K. Desmond, not individually, but as Chapter 7 Trustee for the bankruptcy estate of Lee C. Keebler, v. Lee C. Keebler and Pamela Keebler (In re Lee C. Keebler)

21bk03589, 22ap00001
Upon the objection to the debtor’s exemption claimed in his home, the adversary complaint seeking to avoid fraudulent transfer of the debtor’s home and to sell the debtor’s spouse’s interest in the home and the motion to reopen evidence to take judicial notice, all brought by the chapter 7 trustee, held:  The chapter 7 trustee has proven that the debtor’s prepetition transfer of his interest in his home from joint tenancy to tenancy in the entirety was fraudulent and thus judgment is entered in favor of the trustee and the transfer is avoided.  The debtor’s claim of 100% exemption in his home based on holding tenancy in the entirety is thus not proper and the trustee’s objection to the debtor’s exemption in his home is sustained.  The trustee’s motion to reopen evidence to take judicial notice is granted; however, with the additional evidence, the trustee’s claim in the adversary to sell the debtor’s spouse’s interest still fails because the trustee has failed to satisfy all elements of 11 U.S.C. § 363(h) and judgment is entered in favor of the Defendants with respect to the trustee’s request to sell the debtor’s spouse’s interest therein.

Date: 
Friday, March 29, 2024