Christi Lynn DiStefano

Opinion

Date Signed: February 26, 2025 ky ee SO ORDERED.

Wey Robert J. Faris Ser oF ge United States Bankruptcy Judge

UNITED STATES BANKRUPTCY COURT

DISTRICT OF HAWAII

In re: Case No.: 24-00645 Chapter 13 CHRISTI LYNN DISTEFANO,

Debtor. Related: ECF 2

MEMORANDUM OF DECISION ON CLAIM OF EXEMPTIONS

Chapter 7 debtor Christi Lynn DiStefano claimed an exemption in real

property located in Hawaii which she owns as tenants by the entirety with

her husband. Creditor Endurance American Insurance Company objects to

the claim of exemptions. I will SUSTAIN the objection in part and

OVERRULE it in part, as follows:

Ms. DiStefano is entitled to the benefits of the tenancy by the entirety under Hawaii law. Endurance claims that Ms. DiStefano is domiciled in New

York state and that therefore she is not entitled to the Hawaii tenancy by the

provides that the law of the debtor’s domicile governs certain exemptions.

But the exemption for entireties property rests on § 522(b)(3)(B). That section provides that a debtor may claim an exemption in tenancy by the entirety

property “to the extent that such interest as a tenant by the entirety . . . is exempt from process under applicable nonbankruptcy law . . . .” At least as

far as real estate is concerned, “applicable nonbankruptcy law” is the law of the situs of the real estate, and not the law of the debtor’s domicile. See

Holland v. Safanda (In re Holland), 366 B.R. 825, 830 (N.D. Ill. 2007). Under Hawaii law, entireties property is exempt from the individual

debts of each spouse but is available to the joint creditors of both spouses. Sawada v. Endo, 57 Haw. 608, 612 (1977).

Therefore, the objection is SUSTAINED if and to the extent that Endurance or any other creditor is a joint creditor of Ms. and Mr. DiStefano

and is OVERRULED if and to the extent that Endurance or any other creditor is a creditor of only Ms. or Mr. DiStefano.

2 This order does not determine whether or to what extent Endurance is

a joint or individual creditor, whether Endurance holds a lien on the subject property that cannot be avoided, or the amount of Endurance’s allowed

claim.

END OF ORDER