[CLBS] Debtors wish to sell house during Ch. 13-- may they use the money however they want?

[Alexandra Caval]

Take a look at Burgie (it's a 9th Cir BAP decision). There was also another
decision from the BAP earlier this year - Black - that is also relevant.
Both cases are attached. These should help you get started.

On Thu, Jun 18, 2020 at 11:56 AM Tecla Druffel <tecla.druffel at gmail.com>
wrote:

> Debtors are in a confirmed Ch. 13 plan. On date of filing, debtors asserted
> automatic homestead exemption on residence located in Idaho. There were no
> objections raised to the claim of exemption. Now debtors wish to sell the
> home and move out of state. Confirmed plan states property vests in debtors
> upon confirmation.
>
> *May the debtors freely use the proceeds?* Of course, I want the answer to
> be "yes," and I can make several arguments to support it but I wonder if I
> have a blind spot. Has anyone tested the vesting clause of a Ch. 13 plan
> when it comes to exempt assets turned into money during the pendency of a
> Ch. 13 case? Debtors' credit is shot so obtaining a new mortgage is
> difficult and any new homestead would likely be outside of Idaho.
>
> Feel free to email me directly, tecla at lewistonbankruptcylawyer.com.
>
> Thank you!
> Tecla Druffel
> _______________________________________________
> CLBS mailing list
> CLBS at admws.idaho.gov
> http://admws.idaho.gov/mailman/listinfo/clbs
>


-- 

Alexandra O. Caval

Caval Law Office, P.C.

P.O. Box 1716

Twin Falls, ID 83303-01716

T: 208.733.2035

F: 208.733.3919

alex at cavallawoffice.com




*PRIVILEGE AND CONFIDENTIALITY NOTICE*
This e-mail is intended only for the use of the recipient named and may
contain information that is confidential, privileged, and exempt from
disclosure under applicable laws. If you are not the named recipient, you
may have received this transmission in error. We ask that you immediately
notify the sender and remove this and all attached file(s) from your
system. Receipt by anyone other than the intended recipient is not a waiver
of the attorney-client or work-product privileges. You are hereby notified
that any disclosure, copying, distribution, or use of any of the
information contained in this transmission if you are not the intended
recipient is prohibited and may expose you to liability.
-------------- next part --------------
A non-text attachment was scrubbed...
Name: Black Opinion Final 18-1351 (002).pdf
Type: application/pdf
Size: 141376 bytes
Desc: not available
URL: <http://admws.idaho.gov/pipermail/clbs/attachments/20200618/1b478cdb/attachment-0002.pdf>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: In re Burgie 239 B.R. 406.pdf
Type: application/pdf
Size: 42372 bytes
Desc: not available
URL: <http://admws.idaho.gov/pipermail/clbs/attachments/20200618/1b478cdb/attachment-0003.pdf>