Post-Petition Equity in Chapter 13 – Who Gets The $$$

So, what happens to post-petition appreciation of assets during a Chapter 13? Does the Debtor get to keep the money? Or does the Chapter 13 Trustee get it for the benefit of creditors? That was the question for the Court in In re Klein, 2022 WL 3902822 (Bankr. D. Colo. 2022).

The question in Klein is a bit different than the question of post-petition equity when a case converts from Chapter 13 to Chapter 7. The issue in Klein is what happens when property is sold during the Chapter 13 case . . .

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Thomas D. DeCarlo

Attorney at Osipov Bigelman, PC (Southfield, MI)

Tom DeCarlo is an attorney at Osipov Bigelman, PC, in Southfield, Michigan. He has over 38 years of experience in bankruptcy, including a 17-year stint as a Staff Attorney to a Chapter 13 Standing Trustee in Detroit. He is a frequent contributor to ConsiderChapter13.org and a recurrent seminar speaker including the Annual Steven W. Rhodes Veteran’s Day Conference.

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By Cathy Moran, Esq. (Redwood City, CA) After the pandemic, when the economy lurches back into motion, bankruptcy lawyers will confront a clutch of troubled Chapter 13 cases. In the face of disruption, distress, and the unknown, we'll be called on to guide clients forward, in one direction or another. Let's review the questions we'll need to answer in order...

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