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In re Kennedy, 6/2/16
February 2, 2017

With respect to an annuity debtor obtained as a result of settlement of a personal injury lawsuit, there was no objection to debtor’s claimed exemption in the amount of $8,340 under Tenn. Code Ann. § 26-2-103. However, debtor was not entitled to additional exemptions under Tenn. Code Ann. § 26-2-111 for actual bodily injury, wrongful death, or lost earnings as there was no mention in the settlement agreement that the annuity was being paid to debtor for anything other than to settle debtor’s own personal injury claims. Trustee’s proposed sale of future annuity payments above debtor’s exemption amount was reasonable in that it did not alter debtor’s right to receive payments through the payment of her exemption amount in full. In addition, the proposed sale met the standards of business justification and good faith for nonordinary course sales under 11 U.S.C.S. § 363(b).