|
Multiple tracts and fractured real estate interests create a quagmire
of objections in many bankruptcy cases. Because filing bankruptcy
requires all creditors receive notice, and have access to all forms and
schedules, multiple real estate interests may create a creditor frenzy.
Creditors may team together to claim all tracts as exceptions to claimed
exemptions, and leave debtors to litigate the homestead exemption in an
adversary proceeding.
Filing proper homestead forms to designate one tract, within the real
property records, according to state requirements, often prevents such
frivolous litigation. The presumption of law according to state statutes
is often enough to defeat objections with a motion for summary judgment
if the integrity of a claimed bankruptcy homestead exemption is
challenged.
|
