Dist. Ct. erred in finding that debtor could exempt his contingent future interest in his joint tenancy by the entirety in his marital home under circumstances where debtor’s wife had died prior to completion of debtor’s Chapter 7 bankruptcy petition. Record showed that debtor had listed $1.04 million debt that was secured by judgment lien on his residence, and debtor attempted to exempt his contingent future interest in said tenancy by entirety interest from attachment of said lien under 11 USC section 522(b)(3)(B). While said section could exempt debtor’s tenancy in entirety interest in marital home, it would not exempt his contingent future interest in obtaining fee simple interest in marital home at time his wife died, since Ill. law does not exempt from judgment contingent future interests held by tenants by entirety and only exempts debtor’s tenancy interest from attachment of judgment lien.
Federal 7th Circuit Court
Civil Court
Bankruptcy