In re Sterling

Jack Dave Sterling was adjudicated a bankrupt on November 26, 1935. The trustee filed his report of exempt property on April 4, 1937. Bankruptcy Act, § 47a(ll), 11 U.S.C.A. § 75 (a) (11); General Order 17 (2), as amended 11 U.S.C.A. following section 53. On April 30, 1937, the bankrupt filed exceptions to it. The referee heard the matter, and, on July 12, 1937, sustained the exceptions. The trustee seeks a review of this order, as it relates to a declaration of homestead recorded by the bankrupt on October 14, 1935, on real property acquired by him and his wife and owned by them in joint tenancy. The property has a value of $10,000 and is subject to an encumberance of $6,500. The bankrupt’s wife did not execute the declaration of homestead and filed no consent to it.

The referee held the declaration of homestead valid, to the extent of the bankrupt’s interest in the property.

Under the law of California, the homestead consists of “the dwelling-house in which the claimant resides, and the land on which the same is situated” (California Civil Code, § 1237) selected in accordance with the provision of the law. The property from which the homestead may be selected is designated by…