In Re Rollins

MEMORANDUM

RALPH H. KELLEY, Bankruptcy Judge.

In his schedule of exemptions, the debtor claimed as exempt $2,000 of insurance proceeds held by a creditor, Marion Bank & Trust Company. The bankruptcy trustee did not object to this claim of exemption within 30 days after conclusion of the meeting of creditors as required by Bankruptcy Rule 4003(b). However, after the trustee recovered $3,000 from the Bank, he objected to allowing the debtor any exemption from the money.

The facts are as follows.

The debtor gave the Bank a mortgage on a house and lot to secure a debt. The mortgage doubtlessly…