In Re Shepherd

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge:

The instant case is before the court on an objection of a creditor to the trustee’s report of the debtor’s exemptions. We conclude that that objection should be sustained because we find that the debtors had no interest in the property in question (a security deposit created with respect to a lease) at the time the debtors filed their petition for relief and that the setoff by the creditor/landlord of the debt owed to him against the security deposit was not voidable pursuant to § 553(a)(3) of the Bankruptcy Code (“the Code”).

The facts of the…