In re Cole

MEMORANDUM DECISION

I.

At issue is whether the debtor herein is entitled to a portion of the proceeds from the sale of his residence, pursuant to his claim of a homestead exemption under Cal. Civ.Proc.Code § 704.710 et seq. (West 1987).

The debtor claims that while the sale was conducted voluntarily, the sale of a debt- or’s residence by a Chapter 11 debtor, act *33 ing as a debtor-in-possession engaged in the process of liquidating his assets, is akin to a Chapter 7 trustee selling the assets of a Chapter 7 debtor, which is in turn the equivalent of an “execution sale.” Therefore, pursuant to Cal.Civ.Proc.Code § 704.710 the debtor claims a portion of the proceeds are exempt.

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).

II. FACTS

The debtor herein voluntarily filed his petition under Chapter 11 of the Bankruptcy Code on March 9, 1987. The debtor claimed $45,000 of the equity in his residence at 1856 Viking Way, La Jolla, California, as exempt in his Schedule…