Bankruptcy Estate Wins Bid to Keep Proceeds From Home Sale

A woman trying to shield her home from creditors by filing a federal exemption for her Washington residence can only receive $46,000 from the sale because of a statutory cap, after the Ninth Circuit reversed a bankruptcy panel’s decision Friday.

As part of the Chapter 11 plan documents, Rosana and Monte Masingales listed their Greenacres, Wash., home for about $165,000 and claimed 100% of the full market value, according to court records. The homestead exemption is limited to the statutory cap of $45,950 and proceeds above that limit belong to the bankruptcy estate, according to a three-judge panel of the ...