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Delbert & Carolyn McKeag, Ch. 12, BK87-71 (June 16, 1987)

Reported at 77 B.R. 716.  The debtors’ conversion of non-exempt assets into exempt assets prior to filing Chapter 12 was not in bad faith or forbidden by the Code. However, unless the debtors intended to use some of those exempt assets to fund their plan, the court may find bad faith.

Tuesday, June 16, 1987
Judge Timothy J. Mahoney (Retired)