Sunday, December 29, 2013
Another Court Holds that Trustee Does Not Have the Ability to Administer Exempt Property for DSO Creditors
In he case of In re Quezada, ___ B.R. ____, 2007 WL 438258 (Bkrtcy.S.D.Fla.)(Mark, J.) in which the court held that the trustee does not have the ability to administer exempt property for domestic support obligation ("DSO") creditors pursuant to new section 522(c)(1). The Court in In re Duggan, Case No. 6:06-bk-02512 (Bankr.M.D.Fla. August 15, 2007)(Jennemann, J.) faced the same question and issued its opinion agreeing with In re Quezada . The court noted that to date at least five court have considered this issue and that each court concluded that section 522(c)(1) does not allow a trustee to administer exempt property for the benefit of a DSO creditor.