In Re Reese

Bankrupt wife has filed this petition for review [Title 11 U.S.C. § 67 (c), § 39 (c) of the Bankruptcy Act] of the Referee’s turnover order regarding certain funds deposited by her in Humboldt Federal Savings and Loan Association ($1,-000) and Metropolitan Credit Union ($1,499) within four months of the commencement of these proceedings, and at a time when both she and her husband were insolvent. Bankrupt wife contends that said deposits were made to take advantage of the California exemption laws noted in footnotes 1 and 2. The Referee found that the bankrupts were co-partners doing business as Myrtle Feed Store; that in contemplation of these bankruptcy proceedings, they took monies from their partnership and sold certain stock-in-trade of the partnership to obtain further monies; and that the monies so obtained were deposited in bankrupt wife’s name as above noted.

The Referee entered a turnover order, compelling bankrupt wife to turn said deposits over to the Trustee.

Bankrupt wife relies on In re Dudley, D.C., 72 F.Supp. 943 ; and Crawford v. Sternberg, 8 Cir., 220 F. 73 . The Dudley case relates specifically to the exchange of owned non-exempt assets for exempt assets. It…