The debtor filed a motion to quash a creditor’s garnishment of escrowed proceeds from a sale of a house originally held as tenants by the entireties. The creditor objected. The parties disagreed on whether the proceeds were held as tenants by the entireties as of the petition date because the tenancy may have severed prepetition. Looking to the terms of the escrow agreement and the property settlement agreement, the Court found that the tenancy had severed but that the debtor was entitled to his claimed exemption.
Thursday, August 23, 2018
Chapter 7 Issues