Ch. 7 Surcharge Appeal Taken Up By High Court

Law360, Chicago (June 17, 2013, 8:49 PM EDT) -- The U.S. Supreme Court on Monday agreed to take on a case involving a bankruptcy trustee’s ability to impose a surcharge on exempted property due to a Chapter 7 debtor's misconduct, despite the U.S. solicitor general’s recommendation against reviewing the case.

The high court granted the certiorari petition from Stephen Law, a California man who is appealing a Ninth Circuit decision upholding a $75,000 surcharge that canceled out a “homestead exemption” he claimed on his house after filing for Chapter 7 bankruptcy.

The bankruptcy court had...
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