Schwab v. Reilly - Post-Decision SCOTUScast
SCOTUScast 08-30-10 featuring Scott F. Norberg
On June 17, 2010, the Supreme Court announced its decision in Schwab v. Reilly. When a debtor files a Chapter 7 bankruptcy petition, all of the debtor's assets become the property of the bankruptcy estate. 11 U. S. C. §522(l), however, affords the debtor the right to reclaim certain property as "exempt." Property that a debtor claims as exempt will be excluded from the bankruptcy estate "[u]nless a party in interest" objects. In this case the debtor claimed a property interest as exempt and valued it as falling within the amount section 522(l) allows the debtor to exempt, but the interest sold at a price that substantially exceeded the statutorily authorized amount subject to exemption. The question in this case was whether in order to recoup the excess the trustee in bankruptcy had to object to the exemption.
In an opinion delivered by Justice Thomas, the Court held that the trustee did not have to object in order to recoup in such cases.
To discuss the case, we have Florida International University College of Law Professor Scott F. Norberg.
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Professor Norberg has over 16 years of experience as a law school professor and administrator. Before becoming a member of the faculty at the Florida International University College of Law, he taught at the University of California, Hastings College of the Law, the University of North Carolina at Chapel Hill, and the Mississippi College Law School, where he also served for three years as associate dean for academic affairs. Professor Norberg was the founding Associate Dean for Academic Affairs at the FIU College of Law, serving from 2001-2005, in which position he was primarily responsible for development of the academic program and ABA accreditation matters. The recipient of three teaching awards, Professor Norberg teaches in the areas of contract, commercial and bankruptcy law. He has published numerous articles, including a multi-district empirical study of the Chapter 13 bankruptcy system, which was funded by grants from the National Conference of Bankruptcy Judges and the American Bankruptcy Institute. His articles have been frequently cited by commentators and courts, including the United States Supreme Court. Professor Norberg has been a frequent speaker at legal education programs for lawyers and judges, including workshops for bankruptcy judges sponsored by the Federal Judical Center. He also regularly serves as a member or chair of American Bar Association site inspection teams reviewing law schools for ABA approval. Professor Norberg practiced commercial litigation for six years in Atlanta, Georgia before entering the academy.