District Court Affirms: ‘13’ Debtors Lose Appreciation in a Home After Conversion to ‘7’
On an issue where the courts are split, a district judge in Washington State holds that the debtors lose the post-petition appreciation in the value of estate property when a chapter 13 case converts to chapter 7.
Chapter 13 Creditors Get Exempt Assets that Produce Income
Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.
Debtors Get Mortgage Interest Deduction They Didn’t Pay in a Short Sale
For those entitled to the mortgage interest deduction, debtors may have unexpected tax benefits from short sales.
Tenth Circuit: Debtors Retain Appreciation in a Home Sold Before Conversion to ‘7’
The Tenth Circuit left an unanswered question: Do debtors retain post-filing appreciation in a home that is not sold before the case converts from chapter 13 to chapter 7?
Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says
Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.
Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors
Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.