Kendall

Opinion by Judge HILL.

In this opinion we hold that bankruptcy debtors may claim the California homestead exemption. We reverse a district court decision which held to the contrary.

FACTS

William H. Pladson and Barbara J.P. Snethen, a married couple residing together, filed a joint Chapter 7 bankruptcy petition which claimed a homestead exemption of $52,000 in their residence. John Kendall, the court-appointed bankruptcy trustee, objected to the claimed homestead exemption and argued that bankruptcy debtors are not legally entitled to claim the California homestead exemption. The bankruptcy court overruled the trustee’s objection and allowed the exemption. On appeal, the district court reversed the bankruptcy court, holding that California did not intend to give bankruptcy debtors the benefit of the homestead exemption because bankruptcy does not involve execution on a money judgment. In re Pladson, 154 B.R. 305 (N.D.Cal.1993). The holding essentially denied the homestead exemption to all California bankruptcy debtors. 1 The debtors’ appeal to our court followed.

DISCUSSION

For many years, courts routinely have allowed bankruptcy debtors to claim the California homestead…