How Long Does the Trustee Have to Object to a Claim of Exemption in Bankruptcy?

Written by Peter Mullison, Colorado Bankruptcy Attorney

Once you list the property you claim as exempt under the Bankruptcy Code, the trustee can object to any of your claimed exemption.

Federal Rule of Bankruptcy Procedure 4003(b)(2) states,

The trustee may file an objection to a claim of exemption at any time prior to one year after the closing of the case if the debtor fraudulently asserted the claim of exemption. The trustee shall deliver or mail the objection to the debtor and the debtor’s attorney, and to any person filing the list of exempt property and that person’s attorney.

This means that even if  the trustee makes no objection before your case is closed, you’re still not quite out of the woods.  Up to a year after your case is closed a trustee can argue that your claim of an exemption is improper and should be disallowed.  If the trustee wins that argument, the property or asset that you claimed as exempt can be sold, with the proceeds going to creditors.

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