U.S. Bankruptcy Court
Where a Chapter 13 debtor failed to identify his non-titled spouse on the debtor’s homestead declaration as required by the Massachusetts homestead exemption statute, G.L.c.. 188, §5(a)(1), the Chapter 13 trustee’s objection to the claimed exemption should be overruled, as the declaration complies with all the applicable requirements set forth in §5(a) of the statute.
“Before this Court are the Chapter 13 Trustee’s Objection to Debtor’s Exemptions (the ‘Objection to Exemptions’) and the Chapter 13 Trustee’s Objection to Confirmation of Debtor’s Chapter 13 Plan (the ‘Objection to Plan’) filed by David A. Mawhinney, the standing Chapter 13 trustee (the ‘Trustee’). At the heart of each of the objections is the Trustee’s contention that the exemption in real property claimed by the debtor, Richard Dicato, Jr. (the ‘Debtor’) is invalid because the Debtor’s declared homestead exemption fails to identify the Debtor’s non-titled spouse. Accordingly, the Court must determine the validity of the Debtor’s claimed exemption under the Massachusetts homestead exemption statute, Mass. Gen. Laws ch. 188, §§ 1 etseq. (the ‘Homestead Statute’). …
“The Court has been unable to locate any written decision involving facts identical to those presented in this case. Therefore, in determining the validity of the Debtor’s claimed homestead exemption under Massachusetts law, the Court must endeavor to predict ‘how the Massachusetts state courts would rule if presented with the same question.’ …
“Here, the Debtor’s Homestead Declaration is in writing, identifies the owner (the Debtor), is signed and acknowledged under penalty of perjury by the owner (the Debtor) to be benefited by the homestead, states that the Debtor occupies or intends to occupy the Property as the Debtor’s residence, and was recorded in the appropriate registry of deeds. With regard to the Debtor, the declaration therefore complies with all the applicable requirements set forth in §5(a) of the Homestead Statute. As in [In re Zakarian, 570 B.R. 680 (Bankr. D. Mass. 2017)], anyone inquiring of the public record would be aware that the Debtor was claiming a homestead exemption in the Property as an owner of the Property and, therefore, there is no prejudice to any creditor. Given this material compliance, lack of prejudice to any creditor, and the SJC’s admonition that the Massachusetts Homestead Statute must be construed liberally in favor of debtors, the Court predicts that the Massachusetts courts would find that the Homestead Declaration is valid.”
In Re: Dicato, Richard Jr. (Lawyers Weekly No. 04-016-24) (8 pages) (Katz, J.) (Chapter 13 Case No. 23-41072-EDK) (Nov. 26, 2024).
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