Sumy v. Schlossberg
United States Court of Appeals for the Fourth Circuit
777 F.2d 921 (1985)
- Written by Steven Pacht, JD
Facts
Maryland resident Michael Sumy (plaintiff) filed for Chapter 7 bankruptcy. Michael’s wife did not file for bankruptcy. Michael disclosed approximately $19,500 in unsecured debt, including approximately $1,474 in debt that he jointly incurred with his wife. Michael also disclosed his residence, which he jointly owned with his wife as tenants in the entirety, as an asset. Per Michael, the residence was worth $73,500, which was approximately $20,000 more than a deed of trust on the property. Michael claimed that the $20,000 was exempt from his bankruptcy estate under Bankruptcy Code (code) § 522(b)(2)(B). The bankruptcy trustee, Roger Schlossberg (defendant), objected, contending that the residence could not be exempt under § 522(b)(2)(B) because Maryland law permitted creditors of both spouses to reach property that the spouses owned as tenants in the entirety. Accordingly, the trustee argued that he should be allowed to administer the residence for the benefit of Michael and his wife’s joint creditors pursuant to code § 363(h).
Rule of Law
Issue
Holding and Reasoning (Winter, C.J.)
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