Toby D Geahlen

CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedJune 25, 2025
Docket24-31750
StatusUnknown

This text of Toby D Geahlen (Toby D Geahlen) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toby D Geahlen, (Ohio 2025).

Opinion

The court incorporates by reference in this paragraph and adopts as the findings and analysis of this court the document set forth below. This document has been entered electronically in the record of the United States Bankruptcy Court for the Northern District of Ohio.

Wea" wy Ber John P. Gustafson Dated: June 25 2025 United States Bankruptcy Judge

UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF OHIO WESTERN DIVISION

In Re: ) Case No. 24-31750 ) Toby D Geahlen, ) Chapter 7 ) Debtor. ) ) Judge John. P. Gustafson

MEMORANDUM OF DECISION REGARDING TRUSTEE’S OBJECTION TO DEBTOR’S CLAIM OF EXEMPTION This matter comes before the court upon Chapter 7 Trustee, Thomas E. Cafferty’s (“Trustee”) Objection to Debtor’s Claim of Exemptions (“Objection”). [Doc. #12]. Debtor Toby D Geahlen (“Debtor”) filed a Response to Objection to Exemptions (“Response”). [Doc. #16]. Trustee did not file a reply. An Order for Evidentiary Hearing was entered on January 21, 2025 [Doc. #31]. The Evidentiary Hearing on Trustee’s Objection was held on March 18, 2025. [Doc. #34]. Trustee, Debtor, and Debtor’s counsel attended the Hearing in person. At the Hearing, Trustee,

Debtor, and Debtor’s counsel presented testimony and other evidence in support of their respective positions. For the reasons below, Trustee’s Objection will be overruled. JURISDICTION AND VENUE The district court has jurisdiction over this Chapter 13 case under 28 U.S.C. §1334. This

case has been referred to this court by the district court under its general order of reference. 28 U.S.C. §157(a); General Order 2012-7 of the United States District Court for the Northern District of Ohio. The Objection to the Debtor’s Claim of Exemption is a core proceeding that this court may hear and determine. 28 U.S.C. §§157(a), (b)(2)(A), (B). Venue is proper under 28 U.S.C. §1409(a). These findings of fact and conclusions of law are made pursuant to Federal Rule of Bankruptcy Procedure 7052, made applicable to this contested matter by Federal Rule of Bankruptcy Procedure 9014. See e.g., Corzin v. Fordu (In re Fordu), 201 F.3d 693, 710 (6th Cir. 1999). Whether or not specifically referred to in this Memorandum of Decision, the court has examined all the submitted materials, weighed and observed the demeanor and credibility of the

witnesses, carefully considered all the evidence, and reviewed the entire record of the case in determining the facts pertinent to the case and drawing conclusions therefrom. See e.g., In re Parrish, 326 B.R. 708, 711 (Bankr. N.D. Ohio 2005)(“In doing so, the court considered the witnesses’ demeanor, the substance of the testimony, and the context in which the statements were made, recognizing that a transcript does not convey tone, attitude, body language or nuance of expression.”). The basis for the Trustee’s Objection is that 7663 County Rd. W, Liberty Center, OH (the

2 “Property”), is not legally titled in the Debtor’s name. [Doc. #12]. He asserts that Ohio’s homestead exemption [Section 2329.66(A)(1)] does not extend to the Liberty Center Property. Id. The Debtor argues that the Henry County Common Pleas Court has recognized that he and his wife are the owners of the Property, a determination reached through a settlement agreement between the parties in the state court action. [Doc. #16]. Debtor further claims that at the time of

filing his Chapter 7 Bankruptcy, he and his wife were residing in the Property and have continued to do so. [Id.]. FACTS The Debtor filed for relief under Chapter 7 of the Bankruptcy Code on September 17, 2024. [Doc. #1]. In the Petition, the Debtor listed the Property, located in Henry County, as his residence. [Id.]. On Schedule A/B, the Debtor listed the Property as having a current value of $550,000.00 and asserted a “fee simple” and “joint” ownership interest. [Id., p. 10]. On Schedule C, the Debtor claimed an exemption in the Property under Ohio’s homestead exemption, O.R.C. §2329.66(A)(1). [Id., p. 16]. The Chapter 7 Trustee filed a timely Objection to the claimed exemption. [Doc. #12].

At the evidentiary hearing on the Objection, the Trustee challenged whether the Debtor actually held an exemptible interest in the Property at the time the Bankruptcy Petition was filed. Specifically, the Trustee relied on Debtor’s Exhibit C - the Settlement Agreement and Release of All Claims - arguing that the Property was titled in the names of Trevor Geahlen and Andra Dulaney as of April 10, 2024, and not in the Debtor’s name. The Trustee noted that the bankruptcy case was filed on September 17, 2024, and contended that the Debtor lacked record title to the Property on the Petition date.

3 In response, the Debtor pointed to a provision within Exhibit C, obligating Trevor Geahlen to execute and deliver a Quit Claim Deed conveying the Property to the Debtor on or before April 1, 2024. Debtor contends that the conveyance was agreed to prior to the Petition date, and that he acquired an interest in the Property pursuant to that agreement. However, the Trustee asserts that the closing on the transfer did not occur until after the Petition was filed.

At the hearing, the Debtor testified that the sale of the Property took place after the Bankruptcy Petition was filed. He explained that the Property was originally purchased in 2018, but because he was unable to obtain financing, legal title was placed in the names of his son and daughter. Debtor further testified that he paid the full down payment1 and that neither the son nor daughter contributed financially to the acquisition or maintenance of the Property. He further stated that he and his wife moved into the Property shortly after the 2018 purchase, and that neither his son nor his daughter had ever lived there. The Debtor further testified that his son later initiated litigation in state court to compel a sale of the Property. According to the Debtor, the original understanding between him and his

children were that his son and daughter would inherit the Property in the future and potentially build on a section of it. Following the filing of the Bankruptcy Petition, the Debtor received a Quit Claim Deed conveying title to the Property. The Property was subsequently transferred to third- party buyers at some time in November of 2024. Thus, the central issue is whether, as of the Petition date, the Debtor held an exemptible interest in the Property by virtue of an equitable or legal interest, despite not having record title.

1/ At the Hearing there was some testimony regarding the fact that at least some payments were made from a business account. 4 The facts suggest that the Debtor may have had at least a partial equitable interest, which is exemptible under Ohio law as explained below. However, this raises potential issues concerning the existence of a resulting trust — a situation where property is held in one or more party’s name(s), but the purchase price was paid by someone else. The facts also touch on implied trust principles, one of which – a constructive

trust – cannot be imposed by a bankruptcy court.

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