NCBRC CASES IN REVIEW
the multiple amendments filed by the debtors to their schedule of claimed exemptions, which the bankruptcy court assessed as inappropriately impeding the bankruptcy process, the court could not lawfully award any of the equity in the debtors ' exempt property to pay the Chapter 7 trustee ' s fees. The bankruptcy court therefore erred in ruling that the Chapter 7 trustee ' s administrative expenses could be paid from the proceeds of the sale of the debtors ' homestead property where the trustee agreed to sell the property to a friendly buyer selected by the debtors for a price that was $ 136,000 less than the amount offered by an unrelated buyer; the bankruptcy court reasoned that the debtors had received a benefit that was greater than their $ 70,000 homestead exemption, so that allowing the trustee to be paid from the proceeds was equitable. In re Holley,--- Fed. Appx.----, 2016 WL 6211975( 6th Cir., Oct. 25, 2016)( case no. 16-1081).
Property of the estate— Exemptions: The portion of the debtors ' federal tax refund attributable to the additional child tax credit was exempt under Idaho law as a " benefit " received " under federal, state, or local public assistance legislation." Examining the amendments that had been made to the legislation authorizing the tax credit, the court receded from its prior holding disallowing the exemption. In re Farnsworth, 558 B. R. 375( Bankr. D. Idaho, Oct. 11, 2016)( case no. 4:15-bk-40724).
Property of the estate— Exemptions— Under state law— Extraterritorial application: Where the plain language of the Massachusetts automatic homestead exemption was silent as to its extraterritorial effect, the bankruptcy court would construe it in favor of the debtor as mandated by Massachusetts law. Accordingly, the Massachusetts automatic homestead exemption may be applied to a principal residence located outside of Massachusetts, and the debtor could claim a homestead exemption for property located in Florida. In re St. James,--- B. R.----, 2016 WL 6155899( Bankr. D. Mass., Oct. 21, 2016)( case no. 1:15-bk-13341).
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National Association of Consumer Bankruptcy Attorneys Winter 2016 CONSUMER BANKRUPTCY JOURNAL 49