In re Goins, 539 B.R. 510

Debtor filed Chapter 13 on October 27, 2011; scheduled residential real property with value $98,000 and mortgage > $100,000. Plan confirmed June 18, 2012.
Debtor voluntarily converted the case to Chapter 7 on May 12, 2015; Trustee sought to employ a real estate agent to sell the house at a $147,500 listing.
During Chapter 13 the mortgage balance fell (≈ $103,000 → $76,000) from debtor payments; parties agree debtor is entitled to equity created by those mortgage paydowns (~$27,000).
Dispute: whether post-petition market appreciation of the property during the Chapter 13 period (separate from paydown equity) belongs to the debtor or to the Chapter 7 estate/Trustee.
Court framed statutory conflict between § 348(f)(1)(A)/(B) (conversion valuation rules) and § 541(a)(6) (proceeds/rents/profits of estate property), and reviewed pre- and post-BAPCPA case law.
Court denied debtor’s motion to compel abandonment and granted Trustee’s motion to employ a real estate agent, holding the Trustee may sell and retain post-petition appreciation for the estate.

Issue	Debtor's Argument	Trustee's Argument	Held
Who is entitled to property value appreciation that accrued while the case was pending in Chapter 13 (post-petition appreciation) after conversion to Chapter 7?	Debtor: confirmation/Chapter 13 valuation and related pre‑BAPCPA precedent give debtor the appreciation that accrued during Chapter 13.	Trustee: post-petition appreciation is proceeds/profits of estate under §541(a)(6) and belongs to the Chapter 7 estate; §348’s Chapter 13 valuations do not carry into Chapter 7 post-BAPCPA.	Held for Trustee: post-petition appreciation belongs to the Chapter 7 estate; Trustee may sell and retain that appreciation (debtor still keeps equity from mortgage paydowns).

In re Hyman, 967 F.2d 1316 (9th Cir. 1992) (postpetition appreciation in estate property inures to the bankruptcy estate)
In re Reed, 940 F.2d 1317 (9th Cir. 1991) (appreciation belongs to estate rather than debtor)