Manty & Associates Wins Appeal in Tax Exemption Case

Manty & Associates recently won a case with the United States Bankruptcy Appellate Panel for the Eighth Circuit. The firm successfully appealed the bankruptcy court’s decision permitting a debtor to exempt a property tax exemption. See Nauni Jo Manty v. Grace Montgomery Johnson (No. 13-6050),

According to court documents, Trustee Nauni Manty objected to a debtor’s claimed exemption in a Minnesota state property tax refund. The debtor claimed the exemption as government assistance based on need. The United States Bankruptcy Court for the District of Minnesota agreed with the debtor and allowed the exemption.

A bankruptcy trustee has the fiduciary obligation to protect the interests of all beneficiaries of the estate and, as such, Trustee Manty appealed the decision claiming that the refund was not government assistance based on need. The Bankruptcy Appellate Panel for the Eighth Circuit reversed the bankruptcy court’s decision. In doing so, the B.A.P. explained that property tax refunds cannot be government assistance based on need because, among other reasons, they are available to individuals earning over $100,000.00.

Jackie Williams led the successful appeal, collaborating with several Manty & Associate attorneys.

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