Lewis v. Thompson

MEMORANDUM AND ORDER

RE: DEBTORS’ ENTITLEMENT TO INSURANCE PROCEEDS

THOMAS WOOD, Bankruptcy Judge.

The debtors have filed a complaint claiming $43,500 in fire insurance proceeds held by the trustee. This sum was paid for a personal property loss resulting from a fire which destroyed the debtors’ residence, household goods and miscellaneous personal property after they filed their bankruptcy petition. They claim that their bankruptcy exemption right entitles them to the entire personal property loss proceeds. The trustee contends that owners of exempted property which is destroyed by a fire after…