Snyder v. Zayler, --- B.R. ----, 2004 WL 957765 (NO. CIV.A.6:03 CV 182)
Date: April 27, 2004
Holding: Bankruptcy order REVERSED.
The Bankruptcy Court entered an order requiring turnover of real property that was subject of purported prepetition transfer from Chapter 7 debtor to her children, and denying debtor's claim of homestead exemption in property. On the debtor's appeal, Judge Davis held that (1) because it failed to object to a debtor's claimed homestead exemption within 30 days of the first meeting of creditors, the trustee no longer had the ability to assert out-of-time challenge; and (2) where the debtor's purported transfer to her children for no consideration of real property on which she continued to reside following the purported transfer was in nature of a mere sham transaction, the transfer was null and void and did not affect the fee simple interest which debtor possessed in the property as of date her petition was filed.