BANKRUPTCY LAW (9th Circuit Bankruptcy Appellate Panel; Homestead Exemption): Where debtors did not live in the property continuously from the time the judgment liens attached until the date of the filing of the bankruptcy petition, and where the facts showed that debtors had leased the property and were apparently living in another location on a permanent basis, homestead exemption was properly denied. Creditors could file claims and go through the bankruptcy process to attempt to collect appropriate portions of the debt. In re Jaswinder Singh Bhangoo, [published opinion] 9th Circuit Bankruptcy Appellate Panel, No. BAP No. EC-21-1158-BSL, filed December 22, 2021.
BANKRUPTCY LAW (9th Circuit Court of Appeal; Homestead Exemption): The debtors had moved from Kansas to Arizona, and claimed the Arizona homestead exemption for their new residence. The Trustee objected, but was overruled. The Court of Appeal held that where the debtors (homeowners) claim the homestead exemption, it is up to the Trustee to prove why the exemption is inappropriate in the particular case. Because the Trustee did not show that the homeowners were eligible for Kansas exemptions, the bankruptcy court properly allowed the Arizona homestead exemption to apply to their case. (In re Mark Christian Schreiber and Deborah Jean Schreiber, Case No. 21-16028 [unpublished]; 9th Circuit, filed March 3, 2022).