In Re John L. Glass, Debtor. John L. Glass v. Michael Hitt, Chapter 7 Trustee

I.

OVERVIEW

Chapter 7 debtor John L. Glass appeals a decision of the Bankruptcy Appellate Panel (BAP) which reversed the bankruptcy court’s decision overruling the trustee’s objection pursuant to 11 U.S.C. § 522 (g) to Glass’s claim of a homestead exemption in property Glass had transferred to his son prior to filing for bankruptcy. We have jurisdiction pursuant to 28 U.S.C. § 158 (d), and we affirm the BAP.

II.

FACTS AND PRIOR PROCEEDINGS

The material facts are undisputed. Thirty-seven days prior to filing for bankruptcy, Glass transferred his interest in real property to his son for stated consideration of “love and affection.” Glass then filed a chapter 11 proceeding on July 7, 1992, and did not schedule or disclose any interest in the real property, nor did he claim a homestead exemption. He filed a subsequent chapter 7 petition and again did not list any interest in the real estate and did not claim an exemption.

At the first meeting of creditors, on September 24,1992, the trustee was informed by a creditor about the transfer of real estate from Glass to his son. The trustee instructed Glass to amend his bankruptcy schedules to reflect any interest he might have or…