Vesting of Property in the Debtor Cuts Off Creditor’s Rights, Ninth Circuit Says

By Cathy Moran, Esq. (Redwood City, CA)

Clouds of uncertainty have hovered over Chapter 13 debtors who find that they need to sell appreciated property before the case is over.

Does appreciation occurring after filing go to creditors on the theory that the appreciation is property of the estate?

Or does the vesting of property at confirmation entitle the debtor to any post petition appreciation?

With the 9th Circuit BAP's decision in Black, much of that uncertainty has evaporated. Or at least, for . . .

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