No. 19-1354

Tan Phan v. Minh Van Truong, et al.

Lower Court: Fifth Circuit
Docketed: 2020-06-09
Status: Denied
Type: Paid
Relisted (2)
Tags: bankruptcy bankruptcy-liquidation chapter-7-bankruptcy creditor-claims homestead homestead-exemption lien property-liens secured-debt state-constitution state-constitution-vs-statute state-constitutional-law state-statute unsecured-creditor unsecured-debt
Key Terms:
Securities Immigration
Latest Conference: 2020-11-20 (distributed 2 times)
Question Presented (AI Summary)

Does Chapter 7 bankruptcy require the nonexempt debt to be secured as a lien in order to liquidate debtors' homestead? And if state statute conflicts with state constitution, then which law must be applied to the case at hand?

Question Presented (OCR Extract)

QUESTION PRESENTED Does Chapter 7 bankruptcy require the nonexempt debt to be secured as a lien in order to liquidate debtors’ homestead? And if state statute conflicts with state constitution, then which law must be applied to the case at hand? 1 PETITION FOR WRIT OF CERTIORARI Petitioner respectfully prays that a writ of certiorari issue to review the unpublished opinion of the U.S. Court of Appeals for the Fifth Circuit (Case No. 19-20419). OPINIONS BELOW All below courts refused to liquidate debtors’ homestead just because I’m an unsecured creditor (see opinion). JURISDICTION The opinion of the court of appeals was entered on October 21, 2019. My petition for writ of certiorari was originally postmarked December 26, 2019, so this Court has jurisdiction under 28 U.S.C. § 1254(1). RELEVANT STATUTORY PROVISIONS Tex.Prop.Code § 41.001 provides: “Sec. 41.001. INTERESTS IN LAND EXEMPT FROM SEIZURE. (a) A homestead and one or more lots used for a place of burial of the dead are exempt from seizure for the claims of creditors except for encumbrances properly : fixed on homestead property. (b) Encumbrances may be properly fixed on homestead property for: (1) purchase money; (2) taxes on the property; (3) work and material used in constructing improvements on the property if contracted for in writing as provided by Sections 53.254(a), (b), and (c); (4) an owelty of partition imposed against the entirety of the property by a court order or by a written agreement of the parties to the partition, including a debt of one spouse 2 in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding; (5) the refinance of a lien against a homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the owner;” Tex. Const. Art. XVI, § 50 (a) provides: “Sec. 50. PROTECTION OF HOMESTEAD FROM FORCED OR UNAUTHORIZED SALE; EXCEPTIONS; REQUIREMENTS FOR MORTGAGE LOANS AND OTHER OBLIGATIONS SECURED BY HOMESTEAD. (a) The homestead of a family, or of a single adult person, shall be, and is hereby protected from forced sale, for the payment of all debts except for: (1) the purchase money thereof, or a part of such purchase money; (2) the taxes due thereon; (3) an owelty of partition imposed against the entirety of the property by a court order or by a written agreement of the parties to the partition, including a debt of one spouse in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding; (4) the refinance of a lien against a homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the owner;” U.S. Courts website provides: “Role of the Case Trustee 3 When a chapter 7 petition is filed, the U.S. trustee (or the bankruptcy court in Alabama and North Carolina) appoints an impartial case trustee to administer the case and liquidate the debtor's nonexempt assets. 11 U.S.C. §§ 701, 704. If all the debtor's assets are exempt or subject to valid liens, the trustee will normally file a "no asset" report with the court, and there will be no distribution to unsecured creditors. Most chapter 7 cases involving individual debtors are no asset cases. But if the case appears to be an "asset" case at the outset, unsecured creditors (7) must file their claims with the court within 90 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 3002(c). A governmental unit, however, has 180 days from the date the case is filed to file a claim. 11 U.S.C. § 502(b)(9). In the typical no asset chapter 7 case, there is no need for creditors to file proofs of claim because there will be no distribution. If the trustee later recovers assets for distribution to unsecured creditors, the Bankruptcy Court will provide notice to creditors and will allow additional time to file proofs of

Docket Entries

2020-11-23
Rehearing DENIED.
2020-11-04
DISTRIBUTED for Conference of 11/20/2020.
2020-10-28
2020-10-05
Petition DENIED.
2020-07-29
DISTRIBUTED for Conference of 9/29/2020.
2019-12-26
Petition for a writ of certiorari filed. (Response due July 9, 2020)

Attorneys

Tan Phan
Tan Phan — Petitioner
Tan Phan — Petitioner