Hot Topics with Bill Rochelle
Rising Home Values and Chapter 13: A Deepening Split
When, post-confirmation, a chapter 13 debtor sells his or her home, who gets the benefit of the appreciation: the debtor, or his or her creditors? Judge Randon in Michigan adopted the so-called “estate replenishment approach” and held that sale proceeds derived from post-confirmation appreciation of a home belong to the debtor.
Circuits Are Now Split on Who Gets Appreciation in a Home When a ‘13’ Converts to ‘7’
Splitting with the Tenth Circuit, the Ninth Circuit holds that chapter 13 debtors lose post-petition appreciation in a home if the case converts to chapter 7.
Court: