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Interpretation of Bankruptcy Homestead Exemption, and Criminal Matter

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By FindLaw Staff on September 15, 2010 10:36 AM

In Dunn v. Castro, No. 08-15957, a challenge to a restriction that was temporarily imposed on plaintiff's right to receive visits from his three minor children while he was in prison, the court reversed the denial of defendants' motion to dismiss the complaint where a reasonable prison official could have believed that terminating plaintiff's right to receive visits from his children was lawful, in light of clearly established law and the information he possessed.

In re: Gebhart, No. 07-16769, involved consolidated Chapter 7 bankruptcy petitions in which the value of debtors' homes increased so that they had equity in excess of the homestead exemptions.  The court affirmed the bankruptcy court's order approving the appointment of a real estate broker to sell the home for the benefit of the estate, holding that the fact that the value of the claimed exemption plus the amount of the encumbrances on the debtor's residence was, in each case, equal to the market value of the residence at the time of filing the petition did not remove the entire asset from the estate.

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