Abstract

http://ssrn.com/abstract=1636348
 


 



The Role of Valuation in the Federal Bankruptcy Exemption Process: The Supreme Court Reads Schedule C


David Gray Carlson


Yeshiva University - Benjamin N. Cardozo School of Law

July 8, 2010

Cardozo Legal Studies Research Paper No. 303

Abstract:     
In Taylor v. Freeland & Kronz, a debtor claimed a law suit was exempt. The bankruptcy trustee failed to object within the required period. Later, the law suit realized an amount that far exceeded the monetary limit to which the debtor was entitled. The Supreme Court permitted the debtor to keep all of the proceeds, even beyond the statutory limit, claiming that a deadline was a deadline. Recently, in Schwab v. Reilly, the Supreme Court overruled Taylor, holding that a claim to a monetarily limited item can only exempt the monetary limit. The Court tries and fails to "reconcile" these two holdings. Nevertheless, the rule reached in Schwab is a rational and sensible reading of bankruptcy's exemption process. In the new vision, judicial valuations play no role. An interpretive difficulty arises, however. If judicial valuations play no role in the exemption process, why did Congress bother to craft a careful definition of valuation in Bankruptcy Code section 522(a)(2)? In spite of this embarrassment, a humble role can be found for section 522(a)(2), and the Supreme Court's interpretation of the exemption process can be defended.

Number of Pages in PDF File: 26

Keywords: Bankruptcy, Exemptions, Schwab, 522, Bankruptcy Estate, Debtors, Creditors, Exempt Property, Judicial Lien

working papers series





Download This Paper

Date posted: July 8, 2010  

Suggested Citation

Carlson, David Gray, The Role of Valuation in the Federal Bankruptcy Exemption Process: The Supreme Court Reads Schedule C (July 8, 2010). Cardozo Legal Studies Research Paper No. 303. Available at SSRN: http://ssrn.com/abstract=1636348 or http://dx.doi.org/10.2139/ssrn.1636348

Contact Information

David Gray Carlson (Contact Author)
Yeshiva University - Benjamin N. Cardozo School of Law ( email )
55 Fifth Ave.
New York, NY 10003
United States
212-790-0210 (Phone)
212-790-0205 (Fax)

Feedback to SSRN


Paper statistics
Abstract Views: 472
Downloads: 49
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.375 seconds