Itta Bena, MS asked in Bankruptcy for Mississippi

Q: AGREED ORDER SUSTAINING OBJECTION TO EXEMPTIONS can anyone tell me what this means thanks

Based on Debtors’ Schedule A/B and valuation of $120,000.00

placed on the subject real property and, based on Claim #21 in the

amount of $37,739.40 filed by Bank of Commerce evidencing a deed of

trust lien on said property, it appears to the Court there is approximately

$82,261.00 of equity of which up to $75,000.00 in total may be properly

claimed as exempt. To be granted any exemption on their homestead real

estate provided Debtors under law, Debtors shall file an amended

Schedule C claiming the proper exemption allowed. Debtors shall properly

provide notice of their amended exemption to all required parties and

shall file a certificate of service with the Court evidencing said service.

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2 Lawyer Answers
James L. Arrasmith
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  • Bankruptcy Lawyer
  • Sacramento, CA

A: An "Agreed Order Sustaining Objection to Exemptions" typically means that there was a challenge to the exemptions claimed by the debtors in their bankruptcy case, and the court has issued an order regarding this objection. In this context, it appears that the court has recognized that there is significant equity in the debtors' property.

The court notes that based on the property's valuation and the claim filed by the Bank of Commerce, there is around $82,261.00 in equity. However, the debtors may be allowed to claim up to $75,000.00 as exempt from this equity. This exemption is likely related to homestead exemption laws, which protect a certain amount of a debtor's equity in their home from creditors in bankruptcy proceedings.

To benefit from this exemption, the debtors are required to file an amended Schedule C, clearly stating the exemption they are claiming. They must also notify all relevant parties of this amended exemption and provide proof of this notification to the court. This process ensures that the debtors' rights are protected while also keeping all parties involved in the bankruptcy case informed.

It's important for the debtors to follow these instructions carefully to ensure their rights are fully exercised and protected in the bankruptcy proceedings. If there are any uncertainties or further questions, consulting with a legal professional knowledgeable in bankruptcy law is advisable.

Martha Warriner Jarrett and Timothy Denison agree with this answer

Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: It appears to say that you can use your $75k exemption to protect that portion of the equity but you will need an additional esum of $7,761 from another exemption (wildcard) to be able to claim the full $82k.

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