Bankr. No.:
87-10274
Chapter:
12
Date of Decision:
December 16, 1994
Issue:
Bank. Nos. 87-10274 and 87-10275 (consolidated cases). (1) Whether conversion of Chapter 12 case to Chapter 7 after confirmation of a plan reinstates the original debt of an undersecured claim holder? (2) Whether a debtor may exercise state homestead purchase rights under S.D.C.L. § 21-19-29 after the property has been sold by the Chapter 7 trustee?
Ruling:
(1) After conversion from Chapter 12 to Chapter 7, an undersecured creditor's claim may be revalued to reflect any change in the value of the secured property and the payments received under the plan. The creditor is not bound by the value of its secured claim as determined in the abandoned plan. (2) Any rights a Chapter 7 debtor may exercise under S.D.C.L. § 21-19-29 must be raised before the property is sold by the Chapter 7 trustee.
Full Bankruptcy Court Decision:
Appeal Summary:
In Hoffman Farms v. Pokela (In re Hoffman Farms), 195 B.R. 80 (D.S.D. 1996), the district court affirmed the bankruptcy court’s decision.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: