In Re Magee, 444 B.R. 254

Magee filed a Chapter 13 case on November 20, 2008, and confirmed a plan on January 19, 2010.
In a prior Chapter 7 case (case no. 04-37833), Daniel listed a Monroe residence with $235,000 value and exempted $10,000, the legal New York homestead amount then.
Kamco sought to renew a judgment lien against Debtors; lien amount and timing were unresolved, with lien perfected before NY increased the homestead exemption.
The present schedules omit Kamco, though Kamco later filed a secured claim related to the judgment lien; Debtors contend omission was an honest mistake.
New York increased the homestead exemption to $50,000 on August 30, 2005; Kamco objected to Magee’s $50,000 exemption in the Chapter 13 case.
The Court held that the present Chapter 13 estate is distinct from the prior Chapter 7 estate and that the $50,000 exemption applies.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether res judicata bars the $50,000 exemption	Magee argues prior $10,000 exemption in Chapter 7 not binding.	Kamco contends the prior exemption precludes a larger exemption here.	Res judicata does not bar the $50,000 exemption.
Whether exemptions are determined by the filing date in the current case	Exemptions are based on the law in effect when the petition is filed.	Exemption may reflect prior periods or filings unlawfully affecting this case.	Exemption amount determined by the law in effect at filing; $50,000 allowed.
Are the Chapter 7 and Chapter 13 cases the same estate for exemption purposes	The two cases are distinct; Chapter 7 estate had ended.	Exemption history should affect present case.	Two cases are distinct estates; prior exemption does not bind the Chapter 13 case.

In re Layo, 460 F.3d 289 (2d Cir. 2006) (final judgment on merits; res judicata applies to issues between same parties)
Federated Dept. Stores, Inc. v. Moitie, 452 U.S. 394 (Supreme Court 1981) (final judgment on merits precludes relitigation of issues)
Hayward v. CFCU Community Credit Union, 552 F.3d 253 (2d Cir. 2009) (retroactivity of amended homestead exemption; remedial nature; debts prior to amendment)
In re Jamesway Corp., 202 B.R. 697 (Bankr. S.D.N.Y. 1996) (two distinct bankruptcy cases with distinct estates; leases and administrative claims example)
In re Larsen, 59 F.3d 783 (8th Cir. 1995) (administrative claims across successive cases; single case distinction necessary)
In re Jartran, Inc., 886 F.2d 859 (7th Cir. 1989) (case cited for distinctness of bankruptcy proceedings and estates)