Orville William Harris and Gladys Maxine Harris, Bankrupts v. Harry Hoffman

LAY, Circuit Judge.

This is an ■ action- arising out of a bankruptcy proceeding. The appellant-bankrupts, husband and wife, purchased real estate property in January 1958. This has been occupied by them as their homestead through December 1965, the date upon which they filed their voluntary petition in bankruptcy. On January 1, 1957, one year before the acquisition of the homestead, the appellants executed a promissory note to appellee for $8,000.00, due in one year with five per cent interest. On April 14, 1966, the Trustee in Bankruptcy set off as exempt property the real estate in question…