Skip to main content

Schwab v. Reilly

Docket No.08-538
Op. Below3rd Circuit
ArgumentMar 11, 2009

Holding

Someone who files for bankruptcy is allowed to retain the value of certain property that would otherwise be sold to pay her debts, up to a certain dollar limit. If the debtor initially declares that the property is worth less than that limit, but it turns out that the property is worth more than the limit, the trustee administering the bankruptcy process can keep the money above the limit for the creditors, even if the trustee did not object initially when the debtor first declared the property's value.

Judgment

Reversed and remanded, 6-3, in an opinion by Clarence Thomas on Jun 17, 2010. Justice Ginsburg dissented, joined by Chief Justice Roberts and Justice Breyer.

Welcome to SCOTUSblog

Tell us a bit about yourself so we can tailor what you see. You can update these any time in your account.