UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF KENTUCKY

CORBIN DIVISION

 

IN RE:

WILLIAM KYLE OWENS

DONNA SUE OWENS

DEBTORS CASE NO. 91-60937

 

MEMORANDUM OPINION

This matter is before the Court on the debtors' Motion Ruling From The Court That Earned Income Credit Is Not Part of The Estate, filed herein on May 1, 1992. This Court has previously ruled that the earned income credit is included in the bankruptcy estate pursuant to '541(a). However, there are exemption statutes to which the debtors may turn and thus remove such property from the estate. It has been held that exemption statutes are to be construed liberally. See Matter of Smith, 640 F.2d 888, 891 (7th Cir. 1981). This Court has held in In re Jerry Lynn Goldsberry, Sr. and Louise Marie Goldsberry, Debtors, Case No. 91-60875, May 22, 1992, that debtors may exempt their earned income credit pursuant to KRS 205.220(3) which exempts public assistance benefits. This Court will therefore enter an order allowing the debtors 30 days in which to move to amend to claim such an exemption.

Dated:

BY THE COURT

________________________________

BANKRUPTCY JUDGE

COPIES TO:

Debtors

Lois Renfro Morris, Esq.

James R. Westenhoefer, Esq., Trustee

 

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