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