In re: Wengerd, No. 10-8080 (6th Cir. 2011)
Annotate this CaseWhen the debtors filed for Chapter 7 relief they listed the residence in which they had lived since 1995 as having fair market value of $205,000.00 with secured debt of $164,978.92. Pursuant to Ohio Revised Code 2329.66(A)(1), they claimed a homestead exemption of $40,400.00. They did not disclose a pending contract to sell the house for $205,000. After the sale closed, the debtors moved to an apartment and told creditors that they were using the proceeds for living expenses. The bankruptcy court sustained the trustee's objection to the homestead exemption and ordered turn over of the proceeds. The Sixth Circuit reversed and remanded. Exemptions are determined on the date a bankruptcy petition is filed. The debtors were using the property as their principal residence on the date they filed their petition; their intention to leave was irrelevant and does not defeat their claim to the homestead exemption.
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