The following excerpt is from Lynn v. Gugino (In re Lynn), BAP No. ID-13-1218-JuKiKu, Bk. No. ID-12-02896-TLM (B.A.P. 9th Cir. 2013):
We review a bankruptcy court's conclusions of law, including its interpretation of state law, de novo. Hopkins v. Cerchione (In re Cerchione), 414 B.R. 540, 545 (9th Cir. BAP 2009).
When debtor filed her chapter 7 petition, all her assets became "property of [her] bankruptcy estate, see 11 U.S.C. 541, subject to [her] right to reclaim certain property as 'exempt.'" Schwab v. Reilly, 560 U.S. 770, 130 S.Ct. 2652, 2657
Page 7
(2010). "Property a debtor claims as exempt will be excluded from the bankruptcy estate '[u]nless a party in interest' objects." Id. (citing 522(l)). Whether property qualifies as exempt is to be determined as of the date of the filing of debtors' chapter 7 petition. White v. Stump, 266 U.S. 310, 313 (1924); In re Cerchione, 414 B.R. at 548.
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.