Critical Case Comment – In re Gebhart, 2010 WL 3547641 (9th Cir. September 14, 2010) (Tashima)

In re Gebhart, 2010 WL 3547641 (9th Cir. September 14, 2010) (Tashima)

The trustee’s failure to object to a debtors’ homestead exemption did not preclude the trustee from later disposing of the asset which include the increase in value of the property that arose subsequent to filing.

Summary of the Case

In two cases, combined for appeal, debtors filed for Chapter 7 bankruptcy, with equity in their homes less than the exemption amounts they were eligible . . .

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