August 18, 2009
Supreme Court Sets Oral Argument in Schwab v. Reilly - November 3, 2009
The Supreme Court has set oral argument in Schwab v. Reilly (08-538) for November 3, 2009, I think at 11:00 a.m. This is the case that will decide whether an exemption claimed on Sched C protects the asset or some specific amount of the asset. When a debtor claims stock for example as having a value of $10,000 and then exempts $10,000, is the stock exempt or just $10,000 of the stock? In the 9th Circuit it is clearly just the value. The trustee's failure to object to the exemption does not prevent him from selling the stock a year later; he must give the debtor the exemption amount of course. In Schwab v. Reilly, the circuit court ruled that saying something is worth x and then exempting x results in a full exemption for the asset, not just the amount.
I am going to go to Washington to hear oral argument for one of the three cases before the Supreme Court this term. The other cases deal with the Debt Relief Agency rules and the effect of confirmation of a chapter 13 plan. I'm leaning towards the confirmation order issue but have to see when argument is set.
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