(512) 495-1400

Court Seizes Debtor’s Homestead for Securities Fraud

GBKH lawyers Russ Horton and Elizabeth von Kreisler successfully objected to a bankruptcy debtor’s homestead exemption, a rare achievement in Texas. The debtor had previously been found liable to a GBKH client for violations of securities law and fraud. After the debtor filed for bankruptcy, Mr. Horton and Ms. von Kreisler objected to the debtor’s homestead exemption under 11 U.S.C. §522(q), a new bankruptcy law that limits a debtor’s homestead exemption if the debt results from violations of securities laws. The court granted the requested relief and capped the debtor’s homestead, which otherwise would have been unlimited. This case is one of the first times this law has been successfully employed by a creditor. For more information, see Memorandum Opinion and Order Granting Chapter 7 Trustee’s Objection and David Fernea’s Objection to Debtor’s Homestead Exemption Under 11 U.S.C. §522(q), In Re: Terry Christopher Bounds, Debtor, Case No. 09-12799-CAG, U.S. Bankruptcy Court for the Western District of Texas, Austin Division.

George Brothers Kincaid & Horton LLP

George Brothers Kincaid & Horton LLP 114 West 7th Street, Suite 625 | Austin, Texas 78768 | Austin Law Office Map

Super Lawyers