In re Williams, Bankruptcy No. 79-00694.
| Decision Date | 17 March 1980 |
| Docket Number | Bankruptcy No. 79-00694. |
| Citation | 3 BR 244 |
| Court | U.S. Bankruptcy Court — Eastern District of Virginia |
| Parties | In re Mary Cartterll WILLIAMS, Bankrupt. |
Douglas O. Tice, Jr., Richmond, Va., trustee in bankruptcy.
Charles D. Bennett, Jr., Fredericksburg, Va., for the bankrupt.
Douglas O. Tice, Jr., Trustee in Bankruptcy, for Mary Cartterll Williams, in his report on exempt property filed herein, declined to set apart as exempt that property claimed by the Bankrupt as exempt to which the Bankrupt made a timely exception. Upon request of the Court, the parties submitted briefs in argument. The facts not being in dispute, this matter is now before the Court for determination.
Mary Cartterll Williams filed a bankruptcy petition on May 18, 1979. On Schedule B-4 of said petition she claimed as exempt property under the provisions of Code of Virginia, §§ 34-4 and 34-26 certain items of personal property having an alleged value of $1,276. Title 34 of the Code of Virginia requires a timely filing of a homestead deed for property claimed exempt under said § 34-4. Said homestead deed was timely filed. Those items claimed exempt under § 34-26 require no affirmative action of the Bankrupt other than to assert the benefit of the exemption in the bankruptcy petition. The Bankrupt maintains a separate residence of her own and supports no one other than herself.
Prior to July 1, 1978, § 34-1 of the Code of Virginia was as follows:
Effective July 1, 1978 said Code section was amended by adding as part of the above paragraph immediately after the word "services" the following:
"The word `householder\' shall also include any person who maintains a separate residence of his own whether or not others are living with him."
The Bankrupt contends that with the amendment to the statute which became effective prior to the filing of her bankruptcy petition, she became entitled to the benefits bestowed on those persons who otherwise would qualify as a head of a household irrespective of the lack of any obligations to support anyone other than herself. The Trustee in Bankruptcy contends that the amendment to the statute only extended the privilege of the exemption to those persons otherwise obligated to render support, but who in fact live separate and apart from those to whom the duty of support was owed.
The identical issue in this proceeding was decided by this Court in the case styled Parkinson v. Callaway, 4 Bankr.Ct.Dec. 1023 (E.D.Va.1978). This Court upheld the trustee's rejection of exemptions claimed and effectively concluded that the purpose and effect of the amendment was to extend the exemption privilege to those persons obligated to render support but who maintain a residence separate and apart from the person supported. The counsel for the trustee relies on said Callaway opinion as determinative of this proceeding. Counsel for the Bankrupt, while fully aware of the Parkinson v. Callaway opinion and the reasoning and rationale contained in said opinion, argues forcefully that this Court should overrule Callaway and decide in favor of the Bankrupt because said opinion was erroneously decided. In so contending counsel for the Bankrupt concedes that the interpretation the Court gave to the Code section based on the legislative history of § 34-1 could be correct. However, counsel argues that an analysis of the legislative history of said section also could lead to the opposite result, i.e. the conclusion that persons situated as the Bankrupt were meant to be included in the definition of "householder". Therefore, counsel for the Bankrupt argues that since either interpretation of the intent of the General Assembly in the passage of the amendment to § 34-1 is a reasonable one, the principle that statutes are to be construed in a liberal manner in favor of the bankrupt, should be controlling in this case. Additionally, the Bankrupt argues that the General Assembly in 1979 subsequent to the rendering of the Callaway opinion and the filing of the bankruptcy petition herein...
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