In re Conley

JOINT MEMORANDUM DECISION

WILLIAM STONE, Bankruptcy Judge.

In both of these cases the Chapter 7 Debtors, shortly prior to their bankruptcy filings, voluntarily paid certain of their creditors from funds they obtained as follows: Anthony and Carol Conley (“the Conleys”) from their 2002 income tax refund and Charles & Belinda Matney (“the Matneys”) from funds obtained from a distribution of Mr. Matney’s “401K” plan account. They disclosed these payments in their petitions and schedules of affairs and sought to exempt them in Schedule C of their respective schedules. The Trustee has objected to…