Carl August Krejci

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1
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
CARL AUGUST KREJCI, No. 05-13780
Debtor(s).
______________________________________/
Memorandum on Objections to Claims of Exemption
_________________
The court finds no basis for the debtor’s unsupported assertion that an objection to an exemption
raised before the 341 hearing is premature. An objection is either timely or tardy. In this case, the
Trustee’s objection is timely.
A boat is not a household good. In re McGreely, 955 F.2d 957, 959 (4th Cir. 1992). The
Trustee’s objection to exemption of the boat will be sustained.
The money in the bank accounts can only be exempt if traced to paid earnings. An evidentiary
hearing is required to make this determination.
The court agrees with the holding of the learned judge in In re Cumberbatch, 302 B.R. 675, 681
(Bkrtcy.C.D.Cal. 2003), that a sale pursuant to a family law decree ordering it is a forced sale, so the
proceeds are exempt for six months pursuant to California Code of Civil Procedure § 704.720(b). The
court disagrees with the Trustee’s position that this rule only applies to contested judgments and not
those made pursuant to agreement; there is no basis to distinguish the effect of one such judgment from
the other under state law.
Entered on Docket
December 12, 2005
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 05-13780 Doc# 25 Filed: 12/10/05 Entered: 12/12/05 16:26:59 Page 1 of 2

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1If there was a recorded declaration of homestead, then the proceeds would be exempt pursuant
to § 704.960(a).
2
However, in order to exempt the proceeds the debtor must have resided in the property until the
judgment if there was no recorded declaration of homestead.1 Cumberbatch, 302 B.R. at 678. Also, the
equalizing payment would not be exempt to the extent the debtor’s interest in the real property at the time
of the judgment was worth less than the amount of the payment. An evidentiary hearing appears
necessary to resolve these issues.
For the foregoing reasons, Trustee’s counsel shall submit a form of order sustaining his objection
to exemption of the boat. He shall notice a scheduling conference to obtain a hearing date regarding the
bank accounts and the equalizing payment.
Adjudication of the objections has become something of a moving target, given the amendments
to schedule C. If the court has failed to address any outstanding objection, counsel for the Trustee shall
so inform the court.
Dated: December 10, 2005
SAlan Jaroslovsky
U.S. Bankruptcy Judge
Case: 05-13780 Doc# 25 Filed: 12/10/05 Entered: 12/12/05 16:26:59 Page 2 of 2