- Case No. 12-10407
ISSUE: Whether a debtor is entitled to a Louisiana state homestead exemption on the whole marital residence - or only on her one-half interest - when her non-filing spouse, who received a credit of the full exemption toward the purchase price, buys the entire piece of community property from the bankruptcy estate?
RULING: The court concluded that the Louisiana homestead exemption provided for in La. R.S. 20:1 entitled the debtor to one exemption of $35,000 on the entire piece of property that was the marital residence, and became wholly property of the estate upon the debtor's filing, not just on the debtor's undivided one-half interest in the property. Moreover, the debtor received that whole $35,000 exemption as an appropriate credit towards her non-filing spouse's purchase price for the property. Any other approach would multiply the debtor's homestead exemption beyond the sum that Louisiana law allows for a single tract of community-owned property. Thus, the debtor was not entitled to any further amounts from the estate to satisfy her state homestead exemption.