In re Pugh

MEMORANDUM DECISION RE OBJECTION TO EXEMPTION

I. INTRODUCTION

Debtor Mark Pugh (“Pugh”) voluntarily filed a Chapter 7 bankruptcy petition on May 6, 2014. As a debtor domiciled in California, Pugh was required to select from the California exemption options instead of the federal exemption options because California has opted out of the federal exemption regime through 11 U.S.C. § 522 (b)(2). See Cal.Civ.Proc.Code (“CCP”) § 703.130; Drummond v. Urban (In re Urban), 375 B.R. 882, 888 (9th Cir. BAP 2007).

Under California law, a debtor in bankruptcy may choose from two alternative sets of exemptions: the exemptions available under CCP § 703.140(b), which mirror the federal exemptions, or the regular state law exemptions available in nonbank-ruptcy situations. Goswami v. MTC Distrib. (In re Goswami), 304 B.R. 386, 390 (9th Cir. BAP 2003). Pugh chose the regular state law exemptions which provide a large homestead exemption but do not include a wildcard exemption that could cover any property up to a specified amount. He then claimed as exempt $100,000 equity in his residence located at 8365 Lake Ben Avenue, San Diego, California 92119 (the “Lake Ben Property”) under the family unit…