Jaimee Opfer

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
WILSON DIVISION
IN RE:
JAIMEE OPFER,
DEBTOR 	CASE NO. 07-03542-8-JRL
____________________________________________________________________________
ORDER
This case is before the court on the trustee’s objection to the debtor’s amended
exemptions and motion to strike. On March 13, 2008, the court conducted a hearing on this
matter in Wilson, North Carolina.
On September 24, 2007, the debtor filed for relief under Chapter 7 of the Bankruptcy
Code. Schedule A, which was filed with the petition, shows that the debtor owns a one-half
interest in a house and lot located at 404 Colington Drive, Kill Devil Hills, North Carolina. The
original Schedule A reflects that the house has a value of $250,000.00 and is subject to a first
lien in the amount of $196,500.00, leaving equity of $53,500.00. The other one-half interest in
the house is held by the debtor’s mother. However, the debtor testified at the Section 341
meeting of creditors that the mother’s name is on the deed simply for convenience and that the
mother did not pay any of the monthly mortgage payments, the down payment, or upkeep and
SO ORDERED.
SIGNED this 20 day of March, 2008.
________________________________________
J. Rich Leonard
United States Bankruptcy Judge
____________________________________________________________
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maintenance on the property. 	On January 17, 2008, the trustee filed an adversary proceeding
against the debtor’s mother, attempting to avoid the mother’s interest in the property as a
preference. The original Schedule C filed with the petition lists the debtor’s exemption interest
in the house as limited to the $18,500.00 residential claim available under 11 U.S.C. § 522(b)(3)
and North Carolina General Statute 1C-1601(a)(1). Therefore, $35,000.00 in value would be
available for the bankruptcy estate if the trustee is able to recover on the claim against the
debtor’s mother.
The debtor filed amended Schedules A and C on January 3, 2008, which reflected that the
value of the home is $199,000.00 rather than $250,000.00, as initially reported. The debtor
asserts that the amended value is based on a market analysis taken several months after the
debtor filed her Chapter 7 petition. Based on the debtor’s amended value, the net value of the
home is $2,500.00, which the debtor claims is fully exempt. The trustee contends that the debtor
has purposefully understated the value of the property in an attempt to avoid the bankruptcy
estate’s interest in the property, and that the amended schedule is filed in bad faith and should be
stricken.
Federal Rule of Bankruptcy Procedure 1007 provides that a debtor must file with the
bankruptcy petition, or within fifteen days thereafter, certain schedules and statements including
current assets and liabilities. Rule 1009 provides that a debtor may amend a schedule at any time
before the case is closed without court approval. However, such amendment is not permitted
where the debtor has acted in bad faith or the amendment would prejudice creditors. In re
Yonikus, 996 F.2d 866 (7th Cir. 1993). Here, the debtor’s amended Schedule C reflects a
significantly reduced value in real property which, if accepted, would moot out the adversary
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proceeding filed by the trustee against the debtor’s mother. The court finds that the debtor’s
amended schedules were filed merely in an attempt to avoid the adversary proceeding and were
therefore not filed in good faith.
Based on the forgoing, the trustee’s objection is SUSTAINED. The trustee is not bound
by the value placed on the property in the amended schedules A and C.
“END OF DOCUMENT”
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