In re Arellano

MEMORANDUM DECISION ON CHAPTER 7 TRUSTEE’S OBJECTIONS TO DEBTOR’S CLAIM OF EXEMPTIONS

Debtor Isaías Arellano filed a chapter 7 1 bankruptcy case and concurrently filed a chapter 7 filing fee waiver application. His fee waiver request appeared meritorious given his limited income and the fact that neither his application nor his schedules evidenced an ability to pay the filing fee in installments. The Debtor’s initial schedule C was consistent with this assumption, as the Debtor claimed limited exemptions. The Court, thus, granted the fee waiver request.

At the initial section 341(a) meeting, however, new information came to light. The Debtor, in response to questioning, identified additional personal property assets not previously disclosed. As a result, the Debtor amended his schedule B to add a credit union checking account with a balance of $4,958.65 and an anticipated tax refund of $2,000 based on an amended 2011 income tax return. Concurrent with scheduling the omitted assets, the Debtor modified his schedule C and claimed the omitted assets exempt pursuant to California Code of Civil Procedure (“CCP”) § 703.140(b). The Debtor also paid the filing fee in full…