Bankruptcy
Jul. 31, 2023
Circuit divided over home appreciation in bankruptcy
Judge Michael Daly Hawkins conceded that the question has been disputed in courts across the nation but concluded, based on 9th Circuit precedent, that its review of bankruptcy law “compel the conclusion that any appreciation in the property value and corresponding increase in equity belongs to the estate upon conversion.”
In a case that a judge wrote has “confounded judges all over the country,” a divided 9th U.S. Circuit Court of Appeals panel ruled Friday that a couple in bankruptcy don’t get the appreciation on their home while they made mortgage payments under Chapter 13 reorganization.
Senior 9th U.S. Circuit Court of Appeals Judge Michael Daly Hawkins, writing for the majority, ruled that John Castleman Sr. and his wife, Kimberly, could not keep the $...
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