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. The judgment creditor argued that the mobile home had never been granted permits by the County and had only been placed on the real property to attempt to claim a homestead exemption.
The bankruptcy court held that the judgment creditor had the burden of proving that the Debtors had not used or intended to use the property a residence on the date the petition was filed. The court found the Debtors’ evidence persuasive that this property had long been used as their residence. It further found that violations of the county building codes were not relevant to determining if the property was a residence. Lastly, that the Debtors placed another single-wide on the property after filing bankruptcy, did not show an attempt to fraudulently claim exemptions, as the placement occurred only after the case was filed.
In re Voliva- Homestead Exemption Allowed despite Absence from the Property.PDF
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