The U.S. Bankruptcy Court for the District of Colorado issued its opinion in In re Elliot on Thursday, May 12, 2011.
11 U.S.C. § 522 (b)(1) and (3), C.R.S. § 38-41-207.
Trustee objected to Debtor’s claim of “homestead proceeds” exemption for surplus funds from public trustee’s foreclosure sale of Debtor’s former residence which were held in a segregated bank account. Though Colorado’s exemption statute for homestead proceeds explicitly refers only to proceeds from sale by owner or sale following levy and execution, the Court predicted that the Colorado Supreme Court would liberally construe the statute to apply to proceeds from public trustee sale. Debtor’s exemption was upheld.