In re Robert F. Koehler, v. Geoffrey Richards, Chapter 7 Trustee
Facts: A homeowner who owes a creditor a money judgment files a Chapter 13 bankruptcy petition and plan along with an application for a homestead exemption. The homeowner and the creditor reach an agreement to secure the debt by a trust deed on the homeowner’s residence. To give the trust deed lien priority, the homeowner withdraws their homestead exemption claim. Later, the homeowner defaults on repayment of the trust deed and reapplies for a homestead exemption.
Claim: The homeowner claims they are entitled to a homestead exemption junior to the trust deed lien since the property is their primary residence.
Counterclaim: The creditor claims the homeowner is not entitled to a homestead exemption since the original homestead exemption application was withdrawn under the agreement to secure the debt with a trust deed lien on their residence.
Holding: The Ninth Circuit bankruptcy appellate panel holds the homeowner is not entitled to a homestead exemption since the creditor and homeowner agreed the debt was secured by the homeowner’s residence and the original homestead exemption application was withdrawn. [In re Robert F. Koehler, v. Geoffrey Richards, Chapter 7 Trustee (2026) __ BR __ ]
In re Robert F. Koehler, Debtor
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Legal Aspects of Real Estate Chapter 33: Automatic and declared homesteads
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