Safina N. Mbazira
Safina N. Mbazira
Trial Court Opinion
extent of $500,000. Jn re Dipalma,
24 B.R. 385, 388(Bankr. D. Mass. 1982) (finding where § 522(g) prevented debtor from claiming value of avoided security interest in boat as exempt, the debtor may claim as exempt the value of the boat in excess of the security interest). As discussed above, however, the amount of the avoided and preserved First Mortgage exceeds the amount of the proceeds, such that all the proceeds inure to the estate through the mortgage, and the Debtor’s interest has no value. As the Property itself has been sold, and there is no equity in it for the Debtor’s interest, the exemption attaches to nothing and therefore must be disallowed. See generally In re Pebsworth,
121 B.R. 600, 601(Bankr. N.D. Okla. 1990) (sustaining objection to claim of exemption as to mobile home because debtor’s interest had no value). IV. CONCLUSION For the reasons set forth above, I will by separate order sustain the Trustee’s Objection and disallow the claim of exemption as against both the proceeds of the First Mortgage and the Debtor’s interest in the Property. By the Court, KE Ble. Date: August 24, 2022 □□ □□ Bo ee Christopher J. Panos United States Bankruptcy Judge
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Reference
- Status
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