Prior to bankruptcy Debtor voluntarily gave a second mortgage to his father to secure a debt.  Debtor did not claim an exemption in property, and property was worth no more than total mortgage debt. Trustee subsequently avoided the mortgage as a preference and preserved the lien for the estate.   Debtor then amended Schedule C to claim full exemption. Trustee objected. Held: Trustee’s objection granted. Under section 551(g)(1), a debtor may claim exemption in property recovered by the trustee only if the debtor did not voluntarily make the transfer.
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