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The debtor in Englander owned a house on close to just one acre inside a municipality, as well as the property couldn't be legally subdivided as a result of neighborhood zoning laws. The debtor claimed a homestead exemption for a part of the property that surrounded the nonexempt part, removing any affordable use of the nonexempt part and rendering it valueless. The court docket, in achieving its conclusion which the homestead designation sought for your portion of the property was inappropriate, mentioned that the debtor’s “endeavor at homestead exemption ‘gerrymandering’ was Obviously in undesirable faith.”eight the bankruptcy court docket granted the debtor an exemption in a very percentage of the proceeds to get derived within the sale of your house equivalent to the worth of one-50 percent acre.nine the court docket of appeals reasoned that a sale and apportionment of the profits proceeds is surely an equitable Alternative which allows for the appropriate recognition of the debtor’s homestead and affords creditors some pleasure of their promises.
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