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The eternal conflict among debtors and creditors persists today in
all Vermont bankruptcy courts. Disputes over a reasonable allowance for
retained property are resolved by Vermont bankruptcy exemption statutes,
or alternatively, the federal bankruptcy exempt property list appearing
within the Code. In either cases, federal law determines the application
of the exemption allowances chosen, and creditors may object at any time
to the classification, valuation, or nature of any item listed.
Should a creditor file an objection to exempt status, debtors must be
afforded an opportunity to defend declared property. The presumption
during the objection/hearing process assumes that the debtor's claim is
correct, and the objecting party must provide proof of noncompliance.
Courts tend to indulge exemption claims, up to a reasonable extent, yet
any creditor who shows cause for disallowing an exemption will prevail.
See also: Vermont Homestead Exemption.
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