In Re Coates

MEMORANDUM OF OPINION ON OBJECTION TO EXEMPTIONS

JOHN C. AKARD, Bankruptcy Judge.

The Trustee-in-Bankruptcy objects to the Debtors’ claim of exemption in two vehicles and their home because on the eve of bankruptcy they disposed of nonexempt property and used the proceeds to pay off the liens on those items. The court finds that the exemption for the homestead must be allowed and that the Trustee has a lien on the vehicles to the extent of the nonexempt funds used to pay off the liens on them. 1

FACTS

For a number of years Waverly Floyd Coates operated a farm supply business in Farwell, Texas,…