Eighth Circuit, like the Ninth, has ruled that when Chapter 13 cases are converted to Chapter 7, any increase in a debtor's home value beyond exemptions and liens becomes part of the Chapter 7 estate.
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Critical Case Comment – Post-Petition/Pre-Conversion Equity
From the Editor – Discharge Injunction
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By The Honorable William Houston Brown (Retired)
Filing proof of claim in Chapter 13 violated discharge injunction in prior Chapter 7. Affirming in part the bankruptcy court’s decision, the creditor violated the discharge injunction in a prior Chapter 7 case by filing a proof of claim for the discharged debt in a subsequent Chapter 13. The discharged debt was a deficiency on a mobile home contract, and when the Chapter 13 case was filed, Green Tree was not listed as a creditor but it filed a proof of claim for the deficiency debt, resulting in . . .
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