Objection to Debtor's Claim of Exemptions

[beachymama]

What does this mean? I show this as of 10/7/09 and then an Order on Objection to Debtor's Claim of Exemptions with the same date.

My lawyer/legal assistant has not been helpful with figuring out what this is. Anyone?

Thanks!

[DeadManCrawling]

It means, in the simplest sense, that a creditor or the trustee believes you have tried to exempt property, money, stocks, or an interest in property. However, they believe the exemption is not valid and will attempt to prove this. If they win, you will lose the exemption, and the property or a portion of it, though you may be permitted to buy back your interest in it.

If you win, the exemption will stand.

An example would be: A state may allow an exemption for wages. In FL it is six months wages in a bank account, to a certain limit. If you have more than this number, the trustee may try to claim the excess.

Another example: If you are allowed a homestead exemption of 50k, and the trustee believes you have more equity than that, they could challenge. The result, if they won, would be that they could try to sell the house, collect the difference, hand you the 50k allowable exemption. You would lose the house in this scenario, but have 50k cash from the exemption.

You can look at your exemptions and probably guess which one is the issue. Certainly your attorney will know.

best,

-dmc

[signal]

DeadManCrawling,

So you say in Florida you can exempt up to 6 months wages, which I believe is at a max of $500/week. Does this mean you can exempt $12,000 in your bank account for head of household? (6 months x 4 weeks @ $500/wk)

[want2save]

My order stated on its face that the objection was precautionary. The trustee wanted to see statements proving my bank accounts were in fact IRAs. Once this was proved I had no problem.