Ellmann v. Baker, No. 14-2149 (6th Cir. 2015)
Annotate this CaseThe debtors owned a house in Michigan; in 2007, it was foreclosed and sold at a sheriff’s sale. In 2008, they filed for chapter 13 bankruptcy, but did not disclose any interest in the house or any related cause of action. The redemption period for the house expired after the bankruptcy petition date. The case was converted to a chapter 7 proceeding. The debtors received a discharge. The bankruptcy case closed in February 2009. In March, the debtors filed suit in state court, alleging that the foreclosure was defective, but never sought to reopen their bankruptcy case to amend their schedules. Learning about the case, the trustee claimed that the cause of action was bankruptcy estate property. The bankruptcy court reopened in 2013. The debtors filed an amended schedule that disclosed the claim, stating a value of $3 million. Each debtor claimed a “wildcard” exemption of $5,300.00, 11 U.S.C. 522(d)(5). The bankruptcy court approved settlement of the case and denied the trustee’s objection to the exemptions. The district court affirmed. The Sixth Circuit affirmed, citing the Supreme Court’s 2014 decision that a bankruptcy court may not use equitable powers to deny an exemption as a sanction for debtor misconduct, and noting that the trustee’s objection to timeliness was waived.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.