Tag: homestead

Bankr. E.D.N.C.: In re Regenhardt- Homestead Exemption for Adjacent Property

Summary:

Mr. and Mrs. Regenhardt sought to claim their residence and the adjacent property as fully exempt under the available homestead exemption, with the Trustee asserting that the adjacent property was not part of the homestead and only partially exempt using their wildcard.

In reviewing the case law from the district, specifically In re Stox, No. 10-08123-8-RDD, 2011 WL 5902882, at *6 (Bankr. E.D.N.C. May 27, 2011) and In re Rogers, No. 16-02884-5-JNC, 2016 WL 5794707, at *4 (Bankr. E.D.N.C. Oct. 3, 2016), the bankruptcy court reiterated that the controlling facts in determining whether adjacent property was part of the homestead “was the actual use of the subject properties through and as of the petition date, not a past simultaneous acquisition in one deed.” Based on testimony from Mr.… Read More

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Bankr. E.D.N.C.: In re Rogers- Denial of Homestead Exemption in Adjacent Property

Summary:

Ms. Roger inherited real property from her mother, which included a residence and a building originally used as a country store, which was subsequently renovated into a residential rental property. After obtaining a mortgage against the entire property, Ms. Rogers, with the consent of the lienholder, subdivided the residence and the rental properties. Upon filing Chapter 13, Ms. Rogers claimed both properties under her homestead exemption, as the two were previous a single parcel and the rental property produced revenue necessary for payment of taxes and insurance on both.

Relying on both the definitions of the term “residence” from the dictionary and the Bankruptcy Code at 11 U.S.C.… Read More

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Bankr. E.D.N.C.: In re Smith- Widow’s Exemption and Tenancy by the Entireties

Summary:

The Debtor, 71 years old, was married until her husband died in 1999. At the time of his death, he was the sole owner of a house and land, purchased in 1962, with a mortgage signed by both the Debtor and her husband, and which the Debtor later inherited, pursuant to his will. Upon filing bankruptcy, the Debtor sought to claim the increased “widow’s” exemption of $60,000 in the property, based on N.C.G.S. § 1C-1601(a)(1), which in addition to the regular $35,000 homestead exemption, which provides that heightened amount “so long as the property was previously owned by the debtor as a tenant by the entireties or as a joint tenant with rights of survivorship and the former co-owner of the property is deceased.” The Trustee objected as there was no evidence that the Debtor was an owner of the real property prior to her husband’s death.… Read More

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Bankr. W.D.N.C.: In re Crawford- Definition of Dependent for Exemptions

Summary:

The Debtor’s great uncle Jennings had, in his waning years, received care and assistance from the Debtor and transferred his Rock Hill, S.C. home to her. When she filed bankruptcy, the Debtor asserted that Jennings was her dependent and claimed the property as exempt under N.C.G.S. § 1C-1601(a)(1). Less than three months after her bankruptcy was filed, Jennings died.

Sustaining the Trustee’s objection to the Debtor’s claimed homestead exemption, the bankruptcy court held that while the Debtor had provided sporadic assistance with paying his bills, “what she gave to Jennings was not financial support, but rather, care.” Relying on In re Preston.… Read More

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Bankr. E.D.N.C.: In re Voliva- Homestead Exemption Allowed despite Absence from the Property

Summary:

The Debtors are the owners of real property in Vandemere, North Carolina and a mobile home that sits at that location, but is  personal property.  The Debtors claimed both as exempt under their homestead.  A judgment creditor objected that this was not the residence of the Debtors and that the Debtors had not obtained the necessary permits to place the mobile home at the property.

The Debtors testified that they were currently not residing on the property, partly because the Male Debtor required dialysis that was not available locally and also because the mobile home had been destroyed after the case had been filed, as a result of a hurricane. … Read More

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