The Court said that a debtor must indicate that they are claiming an exemption for the full value of the item not just a portion of it. In Schwab, the debtor listed office equipment with a value of $10,718.00 and exempted the equipment for $10,718.00, which was not the total amount that could have been exempted. The trustee in the case claimed that the value of the equipment was much higher and that the debtor was only entitled to an exemption up to the amount claimed, which was $10,718.00. Therefore, he argued that the equipment could be liquidated and only $10,718.00 would have to be given to the debtor with the balance going to the debtor’s creditors on a pro rata basis. The Court sided with the trustee.
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read full article at http://www.bankruptcylawnetwork.com/how-should-i-list-my-bankruptcy-exemptions-in-light-of-the-supreme-court-case-of-schwab-v-reilly/