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Cochran v Douglasville Winair Co., BK 13-43242, Doc. #40

Chapter 7 Debtor sought to avoid a lien on and claim an exemption in funds paid into the court pursuant to a summons of garnishment.  The garnishing creditor objected to Debtor’s claim of exemptions.  Funds that had already been disbursed from the clerk of court to the creditor pre-petition were not property of the estate and therefore were not subject to exemption by the Debtor.  This would not prevent Debtor from filing an avoidance action and claiming an exemption in funds ultimately returned to the estate.  Under Georgia law, Debtor retained a right to file a traverse in the garnishment proceeding as to funds that were still held in the court’s registry when the case was filed, and thus, Debtor retained an exemptible interest in those funds.

File: 
Date: 
02/10/2014