Issue(s): Whether homestead property exempted by a debtor can later be avoided under 11 U.S.C. §§ 547 and 544.
Holding(s): The bankruptcy court lacks subject matter jurisdiction over avoidance actions on homestead property that was properly exempted under 11 U.S.C. § 522 (b). A debtor may only avoid the transfer of exempt property if: (1) the transfer was not a voluntary transfer by the debtor; (2) the debtor did not conceal the property; (3) the trustee did not attempt to avoid the transfer; (4) the transferred property is the kind that could have been exempted if the trustee had avoided the transfer under § 522(g); and (5) the debtor seeks to exercise the trustee’s enumerated avoidance powers. If the transfer was voluntary then the debtor lacks standing to bring the issue before the court.
Crescent Resources v. Burr (July 22, 2011)
Issue: Does the Plan of Reorganization “specifically and unequivocally” retain the causes of action alleged in the Complaint?
Holding: This Court finds that (1) the Plan preserved the claims made in the Complaint under Sections 544, 548, and 550 and turnover claims with language which was specific and unequivocal, (2) the Plan does not preserve the claims made in the Complaint under “state fraudulent transfer law,” and (3) the Court grants leave for the Plaintiff to amend the Complaint consistent with this Opinion. The Defendant’s Motion to Dismiss should be DENIED in part and GRANTED in part.