Latman

Appellants Richard and Bettina Latman and cross-appellant Virginia Burdette, the Latmans’ bankruptcy trustee, appeal an order of the United States District Court for the Western District of Washington. The district court affirmed in part and reversed in part an order of the United States Bankruptcy Court for the Western District of Washington that had granted the bankruptcy trustee’s motion to surcharge the Latmans’ bankruptcy exemptions to account for funds not properly disclosed in the Latmans’ bankruptcy filings. Holding that the bankruptcy court’s surcharge remedy was a permissible equitable remedy under the Bankruptcy Code, and was not barred by election of remedies or res judicata, we affirm the district court in all respects.

I

On January 12, 2000, Richard and Betti-na Latman filed for Chapter 13 bankruptcy protection. On April 14, 2000, the Lat-mans dismissed their Chapter 13 petition, and, on April 18, 2000, they re-filed for protection under Chapter 7. During the four-day interval between the dismissal of their Chapter 13 petition and their refiling *779 under Chapter 7, the Latmans sold a 1991 Ford Explorer automobile and a 1996 Sea Ray boat, for which they received a…