In Re Matthews
449 B.R. 833
Bankr. M.D. Ga.2011Background
- Debtors James and Kathy Matthews own a residence on a 20-acre tract with an adjoining 11-acre tract; they historically file taxes and manage a joint bank account with Kathy overseeing the account.
- They purchased a 2002 John Deere tractor for about $24,000–$26,000, funded from joint funds; they claim joint ownership and use primarily for farming.
- Kathy never used the tractor, does not farm personally, and has never driven or contributed to farm operations; James engages in farming activities and previously ran Southern Trenching, Inc., with farming income occurring in 2010.
- James maintains the tractor is part of the household assets and also references farming income; his activities include planting grain sorghum and using the tractor for farming.
- The Matthews filed Chapter 7; they claimed exemptions in the tractor under Georgia exemptions: (a)(3) motor vehicle up to $3,500, (a)(6) wild card up to $5,000 plus unused amount, and (a)(7) tools of the trade up to $1,500 each for James and Kathy; Trustee objected to certain exemptions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the tractor is a motor vehicle under OCGA 44-13-100(a)(3). | Matthews contend tractor qualifies as motor vehicle. | Trustee argues tractor is not a motor vehicle. | Tractor is not a motor vehicle; exemption under (a)(3) sustained for Trustee. |
| Whether the tractor is a tool of the trade for Kathy under OCGA 44-13-100(a)(7). | Kathy seeks $1,500 as tool of the trade exemption. | Trustee objects; Kathy does not use or contribute to farming. | Tractor not a tool of the trade for Kathy; exemption under (a)(7) sustained for Kathy is denied. |
| Whether James may claim the wild card exemption in the tractor under OCGA 44-13-100(a)(6). | James asserts the $3,230.31 remaining as part of the wild card exemption. | Trustee does not dispute James' wild card claim. | James may use his wild card exemption under (a)(6) for the tractor. |
Key Cases Cited
- Harris v. State, 286 Ga. 245 (Ga. 2009) (defines motor vehicle for related statutory context as self-propelled on roads; riding mower not a motor vehicle in that context)
- In re Aldrich, 403 B.R. 766 (Bankr. M.D. Ga. 2009) (exemptions construed liberally in debtor's favor)
- Lampe v. Williamson (In re Lampe), 331 F.3d 750 (10th Cir. 2003) (treats exemption interpretation with favorable view to debtors)
- Caron v. Farmington Ntl. Bank (In re Caron), 82 F.3d 7 (1st Cir. 1996) (broad reading of exemptions; policy favoring debtor relief)
- Andersen v. Ries (In re Andersen), 259 B.R. 687 (8th Cir. BAP 2001) (liberal construction of exemptions in bankruptcy)