From the Editor – Property of Estate and Exemptions • NACTT Academy

From the Editor – Property of Estate and Exemptions

By The Honorable William Houston Brown (Retired)

Disallowance of exemptions based on bad faith. The Bankruptcy Appellate Panel vacated and remanded an order sustaining the Chapter 7 trustee’s objection to the debtors’ amended exemption claim, when the objection was based on the debtors’ bad faith. The debtors claimed exemption under Arizona law in prepaid rent and a security deposit, and the trustee argued that failure to disclose the asset was ground for denial of the exemption. Holding that Law v. Siegel, 134 S.Ct. 1188 (2014), discredited the use of equitable principles as . . .

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