In Re: Alicia Marie Richards

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

IN RE: ALICIA MARIE RICHARDS. Case No. 8:23-cv-00199-SB

Debtor.

ORDER AFFIRMING CIVIL

CONTEMPT ORDER

Bankruptcy No.: 8:21-bk-10635-SC

Following acrimonious divorce proceedings between Debtor Alicia Marie Richards and her ex-husband, Debtor filed for bankruptcy under Chapter 7. Debtor claimed a homestead exemption in her bankruptcy petition, which entitled her to a portion of the proceeds of her home upon its sale, subject to California’s requirement that homestead exemption proceeds be reinvested in an eligible dwelling within six months of disbursement. Debtor’s home was sold at an auction overseen by the bankruptcy court and Debtor received $300,000 as her portion of the homestead exemption. After Debtor failed to reinvest the $300,000 in an eligible dwelling as required, the bankruptcy court found that the proceeds had become property of the bankruptcy estate and ordered Debtor to turn over the proceeds and provide an accounting for any withheld funds. Debtor failed to comply. The bankruptcy court held Debtor in civil contempt and remanded her into custody until she purges her contempt. Debtor appeals…