IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
GERHARD D. FRIEDRICHSEN and No. 1-85-00007
GINETTE L. FRIEDRICHSEN,
ORDER SUSTAINING OBJECTION TO AMENDED CLAIM OF EXEMPTION
The debtors filed their Chapter 7 petition on January 4, 1985. At the time they filed their petition, they
scheduled as an asset $2500.00 held in a bank account which they identified as "deposits from paid earnings."
The debtors did not claim the account as exempt. The Trustee made demand for the funds and when there was
no compliance he brought an adversary proceeding against the debtors. On December 17, 1986, a judgment
was entered requiring the debtors to pay the Trustee $2500.00, plus interest. On February 20, 1987, the
debtors filed an amended schedule B-4 attempting, for the first time, to exempt the bank account funds.
The debtors seem to believe that if their amended claim of exemption were allowed the judgment against
them would somehow be voided. This is not the case; the judgment is a money judgment, fully enforceable
regardless of whether the claim of exemption is allowed. The fact that the basis
for the judgment was an asset
now claimed as exempt is irrelevant.
Since allowance of the exemption would not keep the Trustee from enforcing his judgment, the issue of
allowability is basically moot. However, there are sufficient grounds for sustaining the objection even if the
issue were not moot based upon the debtors' failure to put forth a reasonable excuse for the delay of two years
in seeking amendment (In re Nowak
(Bkrtcy.W.D.Wis.1984) 43 B.R. 545, 547), the substantial time spent by
the Trustee attempting to recover the asset (In re Polk
(Bkrtcy.E.D.Mo.1981) 1 BAMSL 417), and the
hindrance to the Trustee in the diligent administration of the estate already caused by the debtors (In re Snow
(Bkrtcy.E.D.Cal.1982) 21 B.R. 598, 600; In re Shapkin
(Bkrtcy.E.D.Cal.1981) 16 B.R. 26, 28).
IT IS THEREFORE ORDERED that the Trustee's objection is sustained.
Dated: May 26, 1987 _________________________