ANABELLE EXCLUSA GREEN and ANGEL MANUEL RIVERA LOPEZ

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IN THE UNITED STATES BANKRUPTCY COURT FOR
THE DISTRICT OF PUERTO RICO
IN RE:
ANABELLE 	EXCLUSA GREEN 	CASE NO. 12-00337 BKT
ANGEL MANUEL RIVERA LOPEZ 	Chapter 13
XXX-XX-5483
XXX-XX-8375
FILED & ENTERED ON 07/05/2012
Debtor(s)
Amended Opinion & Order
Before 	the 	Court 	is 	the 	Chapter 	13 	Trustee’s 	(the 	“Trustee”)
Objection to Exemptions (the “Objection”) (Dkt No. 12), Debtors’ response
to the Objection (Dkt No. 13), and the Trustee’s memorandum of law in
support of the Objection (Dkt No. 30). 	The Trustee argues that under the
Puerto Rico Home Protection ActNo. 195, enacted on September 13, 2011 (in
Spanish titled “Ley del Derecho a la Protección del Hogar Principal y el
Hogar Familiar”, referred to herein as the “PR Home Protection Act”), the
homestead 	exemption 	claimed 	by 	Debtors 	is 	inapplicable 	to 	bankruptcy
cases. 	Therefore, 	the 	Trustee 	requests 	that 	Debtors’ 	claim 	for
exemptions 	under 	the 	PR 	Home 	Protection 	Act 	be 	disallowed. 	For 	the
reasons 	set 	forth 	below, 	the 	Objection 	to 	Exemptions 	is 	granted 	and
Debtors’ claim for homestead exemption pursuant to the PR Home Protection
Act is denied.
I. Factual Background
Debtors, Anabelle Exclusa Green and Ángel Manuel Rivera López, filed
a voluntary petition under the provisions of Chapter 13 of the Bankruptcy
Code 	on 	January 	23, 	2012 	(Dkt 	No. 	1). 	Debtors 	listed 	their 	primary
residence in Schedule C with a value, as of the date of the filing of the
petition, 	of 	$87,500.00. 	(Dkt. 	No. 	1, 	p. 	27).As 	it 	appears 	from 	the
Schedules, 	said 	property 	is 	not 	encumbered 	with 	any 	mortgage 	liens.
Debtors claim a homestead exemption over their primary residence for the
Case:12-00337-BKT13 Doc#:35 Filed:07/05/12 Entered:07/05/12 14:01:36 Desc: Main
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totality of the value of the property, pursuant to the PR Home Protection
Act. 	(Dkt. No. 1, p. 27).
The 	Trustee 	argues 	that 	the 	recent 	PR 	Home 	Protection 	Act 	is
inapplicable 	to 	bankruptcy 	cases, 	and, 	as 	such, 	Debtors’ 	homestead
exemption must be disallowed. 	(Dkt No. 12). The Trustee mainly relies on
the 	specific 	waivers 	to 	the 	homestead 	exemption 	that 	the 	PR 	Home
Protection Act incorporates in its Article 4. 	(Dkt No. 30).
II. 	Discussion and analysis
Under Section 541 of the Bankruptcy Code, all of Debtors’ assets
become 	property 	of 	the 	bankruptcy 	estate 	upon 	the 	filing 	of 	the
bankruptcy 	petition. 	This, 	however, 	is 	subject 	to 	Debtors’ 	right 	to
reclaim certain property as exempt under Section 522. 	11 U.S.C. § 522.
Article 4 of the PR Home Protection Act provides that the homestead
protection 	is 	unwaivable, 	except 	in 	those 	circumstances 	expressly
enumerated 	in 	said 	article. 	Applicable 	to 	this 	case, 	Article
4(d)provides that the homestead protection is waived in those cases where
the 	Bankruptcy 	Code 	is 	applicable. 	Thus, 	by 	its 	plain 	terms, 	the
protections of the PR Home Protection Act are exclusive of the exemptions
afforded by the Bankruptcy Code. 	Pursuant to Article 4 of the PR Home
Protection 	Act, 	when 	Debtors 	filed 	for 	bankruptcy, 	they 	automatically
waived the homestead protection provided therein. See In re Hernández, --
B.R. --,2012 WL 1255126*3 (Bkrtcy.D.Puerto Rico, Hon. E. Lamoutte).
III. 	Conclusion
For 	the 	reasons 	set 	forth 	herein, 	the 	Trustee's 	Objection 	to
Exemptions is granted.
IT IS SO ORDERED.
San Juan, Puerto Rico this 05 day of July, 2012.
Brian K. Tester
U.S. Bankruptcy Judge
Case:12-00337-BKT13 Doc#:35 Filed:07/05/12 Entered:07/05/12 14:01:36 Desc: Main
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