In Re Dudley

The Bankruptcy Act of 1938 recognizes exemptions to which bankrupts are entitled by state laws and requires them to be claimed. The duty of the Trustee to set apart the exempt property is also prescribed by the Act. The effect of these provisions is that the right to exemptions, their nature and amount, are governed strictly by state laws, and the decisions of state courts interpreting them. The law of California is very generous in the matter of exemptions. The exemptions are varied and numerous. Exemption statutes are not only liberally construed, but “are generally subject to the most liberal construction which the courts can possibly give them.” The courts of California have been most liberal in interpreting such statutes. They have taken the view that their object is to put a protective-guard around the debtor’s property for his protection and that of his family. And because the exemption flows from the nature of the property and not from any claim of exemption , the courts have protected it against attachment and execution , against a claim for unpaid alimony , and even against a waiver in advance by the debtor.

The problem involved in this review must be approached in the…