The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law.
Minnesota Bankruptcy Case:
Hecker v. Chrysler Fin. Servs. Americas, LLC (In re Hecker), Civ. No. 09-3054 (D. Minn. 1/6/10) (Magnuson, J).
Case Summary:
Agreed
Chrysler Financial objected to Hecker’s claimed Minnesota homestead exemption in a luxury home in Cross Lake, Minnesota. Hecker satisfied the statutory requirement of occupancy under Minn. Stat. § 510.01 but did not personally own it. The home was owned by an LLC he had created in order to shield the asset from his wife. Hecker owned a majority interest in the LLC and asserted an ownership interest through the doctrine of “reverse piercing the corporate veil” pursuant to Cargill, Inc. v. Hedge, 375 N.W.2d 477 (Minn. 1985). The bankruptcy court had found that the limited liability companies were not Hecker’s alter egos, that creditors and shareholders would be harmed by the pierce, that it would not be unfair or unjust not to pierce the veil, and that Hecker had not met his burden. Hecker appealed from the bankruptcy court’s order. The district court affirmed the bankruptcy court, agreeing with its factual and legal conclusions.
Credit: The preceding was a summary of a case relevant to Minnesota bankruptcy law. The case summary was prepared by the U.S. Bankruptcy Court through Judge Robert J. Kressel & attorney Faye Knowles.