UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF KENTUCKY

LEXINGTON DIVISION

IN RE:

JOHNNY WAYNE RICE

KATHRYN ROYCE RICE

DEBTORS                                                                            CASE NO. 09-51525

ORDER

           This matter is before the court on the Trustee’s Partial Objection to Exemptions. The court heard arguments of counsel on July 16, 2009 and took the matter under consideration. The court’s research has revealed In re Sale, 143 F. 310 (6^th Cir. 1906), a case interpreting Kentucky law in which the debtor’s wife was the property owner and he had no ownership interest in the property. The debtor had been allowed a homestead exemption and the case trustee appealed that decision. The Court of Appeals ruled that “. . .the right of homestead . . . cannot logically exist in any land in which the debtor has not a present legal right of possession or occupancy.” Id. at 311. This case continues to be good law and to constitute persuasive authority on this subject. It is therefore hereby ordered that the Trustee’s Objection is sustained.

Copies to:

J. James Rogan, Esq., Trustee

Ronald E. Butler, Esq.

U.S. Trustee