The Debtors filed a petition for relief under chapter 13 of the Bankruptcy Code on November 23, 2016.
The Debtors timely filed their bankruptcy schedules. In their Schedule A/B — Property (“Schedule A/B”), the debtors listed their interest in their home. The debtors are the 100% owners of their home. They listed the current value of their home as $78,950, and they disclosed a mortgage lien in the amount of $62,750 as of the petition date.
In their Schedule C — The Property You Claim as Exempt (“Schedule C”), the Debtors elected to claim federal exemptions under 11 U.S.C. § 522(d). The Debtors claimed 100% of the fair market value of their home as exempt from their creditors, see 11 U.S.C. §522(d)(1), as well as their interest in various items of personal property, see 11 U.S.C. § 522(d)(5).
As of the petition date, according to their Schedule A/B, the Debtors had an equity interest in their homestead in the amount of $16,200.
The total listed value of the personal property the Debtors claimed as exempt under § 522(d)(5) was $12,442 as of the petition date.
The trustee timely objected to the Debtors’ claimed exemptions. The trustee complains that the debtors have exceeded the statutory exemption limit in § 522(d)(5). The trustee requests that the Court limited the debtors’ exemptions under § 522(d)(5) to the statutory limit of $2,500.