In Re Wengerd
453 B.R. 243
6th Cir. BAP2011Background
- Debtors filed a Chapter 7 petition on July 3, 2009, residing in a home in Hartville, Ohio, valued at $205,000 with $164,978.92 secured debt.
- Debtors claimed an Ohio homestead exemption under § 2329.66(A)(1) for up to $40,400, claiming the property as their residence.
- Pre-petition, Debtors entered into a contract to sell the home for $205,000 and closed the sale four days after filing.
- Post-sale proceeds were used for living expenses; Debtors moved to Hesston, Kansas, and did not plan to purchase another home.
- Trustee objected to the homestead exemption and sought turnover of sale proceeds, arguing no intent to occupy post-petition negated the exemption.
- Bankruptcy court sustained the Trustee’s objection, relying on the view that abandonment intent destroys the exemption; Panel disagreed and reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Debtors may claim the Ohio homestead exemption despite post-petition abandonment intent. | Wengerds contend intent to remain is not required; they were occupying as residence at filing. | Barbacci argues abandonment intent and actual abandonment negate exemption. | Exemption allowed; abandonment intent post-petition is irrelevant. |
Key Cases Cited
- In re Cope, 80 B.R. 426 (Bankr.N.D.Ohio 1987) (exemption determined at petition date; continued residence supports exemption)
- In re Pagan, 66 B.R. 196 (Bankr.N.D.Ohio 1986) (intent to vacate and absence post-filing defeats exemption)
- In re Garland, 98 B.R. 767 (Bankr.S.D.Ohio 1989) (specific intent to remain required under prior logic)
- In re Alam, 359 B.R. 142 (6th Cir. BAP 2006) (liberal construing of exemptions favors debtor)
- White v. Stump, 266 U.S. 310 (1924) (exemptions determined on petition filing date)
- Owen v. Owen, 500 U.S. 305 (1991) (exempt property determined as of petition date)
