584 B.R. 861
Bankr. N.D. Ind.2017Background
- Debtor Anderson claimed a tangible personal property exemption under Indiana statute for Notre Dame football season tickets.
- Trustee Homann objected, arguing the tickets are intangible assets not subject to a tangible exemption.
- Anderson acquired the tickets as a Notre Dame employee at a favorable price before filing for Chapter 7 bankruptcy.
- Anderson listed the tickets as an asset and valued them at $1,100; she did not possess physical possession of the tickets at filing.
- Indiana exemption § 34-55-10-2(c)(2) is cited as controlling for tangible property; the dispute centers on whether tickets are tangible or intangible for exemption purposes.
- Court notes the issue is a question of first impression under Indiana law and considers related caselaw and the purpose of exemptions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are Notre Dame football season tickets tangible or intangible for Indiana exemption purposes? | Homann: tickets are intangible under Indiana law. | Anderson: tickets are tangible personal property exempt under § 34-55-10-2(c)(2). | Tickets are intangible for exemption purposes. |
| Should the exemption statute be liberally construed to favor debtors in this context? | Homann: liberal construction supports debtor’s exemption. | Anderson: purpose of exemptions should guide interpretation; not all items with use value qualify. | Court endorses debtor-favorable interpretation but confines it to the statutory framework; tickets here are intangible. |
Key Cases Cited
- Butner v. United States, 440 U.S. 47 (Sup. Ct. 1979) (property interests defined by state law; uniform treatment in bankruptcy)
- Levin v. Dare, 203 B.R. 137 (S.D. Ind. 1996) (liberal construction of exemption statutes; cash treated as tangible in Dare)
- In re Oakley, 344 F.3d 709 (7th Cir. 2003) (cash treated as intangible for exemption purposes; purpose of exemptions)
- Maurer v. Indiana Dept. of State Revenue, 607 N.E.2d 985 (Ind. Tax 1993) (distinction between taxation and exemption; context of tangible vs intangible)
- Indiana Waste Sys. v. Indiana Dept. of State Revenue, 633 N.E.2d 359 (Ind. Tax 1994) (tax refunds; not controlling for exemption analysis)