I am finding this all so confusing... I don't understand how if I claimed certain exemptions in my petition(including homestead), and there are 30
days passed without objection, but then I add three more exemptions, a creditor, or trustee can go back and object to my original homestead exemption? Discharge my debts, but still take my house? Because then, I wouldn't want a discharge.. but a dismissal. I read this on the web:
Use of Exempt Property During Bankruptcy
All personal Chapter 7
bankruptcies claim some property as being exempt from the bankruptcy estate. The Chapter 7 Trustee and creditors have a limited period of time, 30 days, to object to the Debtor’s proposed exemptions. If they object, an adversary proceeding is created and the Debtor must defend his objections in bankruptcy court
What happens when the Trustee and creditors miss the 30 day deadline, but upon filing a late exemption it appears clearly the debtor’s claim of exempted property has no basis and the property in question is part of the bankruptcy estate to be sold for the benefit of creditors.
The Supreme Court of the United States has strictly applied the 30 day exemption window. See: Freeland & Kronz, 503 U.S. 638. Bankruptcy courts have held that when a debtor lists property as exempt from the estate, and neither the trustee nor the creditors object during the 30-day time period, the property no longer belongs to the estate and the debtor may use it as his own. This means that if no party objects to your claim of exemption within 30 days after the meeting of creditors, you , as debtor, may freely sell or encumber the property without need for permission from the Trustee or the court. This often comes into play when a debtor claims a homestead exemption and seeks to sell the property while in bankruptcy. Thirty days after the creditor meeting the debtor can sell his homestead, obtain title insurance for the buyer, without leave of the bankruptcy court.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Flor