In Re Haaland
Opinion
Opinion
Hargrove, J.
MEMORANDUM DECISION
At issue is whether a lawsuit for legal malpractice may be claimed exempt pursuant to Cal.Civ.Proc.Code § 704.140.
This court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1334 and § 157(b)(1) and General Order No. 312-D of the United States District Court, Southern District of California. This is a core proceeding pursuant to 28 U.S.C. § 157 (b)(2)(A) and (B).
FACTS
On March 19, 1987, debtor filed for relief under Chapter 13 of the Bankruptcy Code. Debtor claimed a homestead exemption on his residence, which was being foreclosed upon. On September 22, 1987, the Chapter 13 proceeding was dismissed by order of the court. Debtor’s attorney then advised that he would file a Chapter 7 proceeding, but that the filing could wait until after the foreclosing creditor had renoticed sale of the property. However, under California law, further notice was not required and the debtor's residence was foreclosed upon on September 30, 1987.
On November 25, 1987, debtor (now represented by another attorney) filed this Chapter 7 proceeding. On January 7, 1988, the trustee filed a report of no distribution, indicating that the case was a no asset case. The…