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Bankruptcy Trustee Gets the Upside

December 15, 2018 Posted in Case Law Review Share

The Ninth Circuit rejected a debtor’s attempt to update the value of her exemptions in light of changes to the value of her residence after she filed bankruptcy. The debtor filed her bankruptcy in 2013. Her case remained open for several years as various adversary proceedings were litigated. During this period the value of the debtor’s condominium appreciated. The debtor attempted to amend her bankruptcy schedules in 2016 to exempt the appreciated value of condominium. The Ninth Circuit Court of Appeals affirmed the bankruptcy court’s decision that an amendment to update the value of an exemption in light of post-petition changes in value was not permitted. One wonders whether the debtor could have avoided this outcome by filing a motion early in the bankruptcy proceeding seeking to compel the bankruptcy trustee to abandon its interest in the condominium. Wilson v. Rigby, 909 F.3d 306 (9th Cir. 2018).