(Bankr. W.D. Ky. July 28, 2017)
The bankruptcy court enters summary judgment in favor of the debtor and orders the trustee to abandon any interest in the debtor’s residence. As of the petition date there was no equity in the property due to the balance on two mortgages. After the petition date, due to postpetition payments on the second mortgage, significant equity in the property was created. The trustee argued the equity was property of the estate. The court, however, holds that the debtor is entitled to such postpetition equity. As of the petition date, the property was of inconsequential value to the estate and thus should be abandoned. Opinion below.
Attorneys for Debtor: Seiler Waterman LLC, David M. Cantor, William P. Harbison, Keith J. Larson
Attorneys for Trustee: Tilford, Dobbins & Schmidt, PLLC, William Stephen Reisz