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IN RE GEBHART

Nos. 07-16769, 07-35704.

621 F.3d 1206 (2010)

In the Matter of Nikalous G. GEBHART, Debtor, Nikalous G. Gebhart, Appellant, v. Maureen Gaughan, Trustee-Appellee. In the Matter of Steven Jay Chappell; Julie Lynn Chappell, Debtors, Steven Jay Chappell; Julie Lynn Chappell, Appellants, v. Michael P. Klein, Chapter 7 Trustee, Appellee.

United States Court of Appeals, Ninth Circuit.

Submission Vacated August 27, 2009.

Resubmitted July 30, 2010.

Filed September 14, 2010.

Attorney(s) appearing for the Case

Harold E. Campbell , Mesa, AZ, for appellant Gebhart.

Steven J. Brown , Phoenix, AZ, for appellee Gaughan.

Marc S. Stern , Seattle, WA, for appellants Chappells.

James W. Shafer , Seattle, WA, for appellee Klein.

Tara Twomey , San Jose, CA, for amicus curiae National Association of Consumer Bankruptcy Attorneys.

Before: A. WALLACE TASHIMA and MARSHA S. BERZON, Circuit Judges, and ROBERT J. TIMLIN, District Judge.

OPINION

TASHIMA, Circuit Judge:

These consolidated appeals present the question of how to construe the homestead exemption in bankruptcy. In both cases, the debtors filed for Chapter 7 bankruptcy at a time when the value of the equity in their homes was less than the amount they were eligible to claim under the state or federal homestead exemption. There was no value in the homestead properties that could...

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