United States Bankruptcy Appellate Panel

For the Eighth Circuit 

_______________________________ 

No. 22-6009

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In re: MACHELE L. GOETZ, 

Debtor. 

_______________________________

MACHELE L. GOETZ, 

Appellant

v.

VICTOR F. WEBER, Chapter 7 Trustee,

 Appellee

________________

Appeal from United States Bankruptcy Court 

for the Western District of Missouri

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Submitted: April 18, 2023 

Filed: June 1, 2023 

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Before SHODEEN, RIDGWAY, AND HASTINGS, Bankruptcy Judges. 

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Hastings, Bankruptcy Judge.
2 

Debtor/Appellant Machele L. Goetz appeals the bankruptcy court’s1 order 

denying Goetz’s Motion to Compel Trustee to Abandon Real Property of Debtor. 

For the following reasons, we affirm.

BACKGROUND

Goetz petitioned for bankruptcy relief under Chapter 13 of the Bankruptcy 

Code on August 19, 2020. She valued her residence at $130,000 at the time, and the 

parties stipulated that she claimed a $15,000 homestead exemption under section 

513.475 of the Missouri Revised Statutes. On the petition date, Freedom Mortgage 

held a $107,460.54 mortgage lien against the property. The parties agreed that there 

would have been no proceeds in excess of the debt secured by the mortgage 

lien, exemption and costs of sale had the Trustee liquidated Goetz’s residence 

on the petition date. 

Goetz filed her Chapter 13 Plan on the same date she petitioned for bankruptcy 

relief. The bankruptcy court confirmed her plan on October 16, 2020. Pursuant to 

the confirmation order and 11 U.S.C. § 1327(b), property of the estate vested in 

Goetz on confirmation. 

The bankruptcy court granted Goetz’s motion to convert from a Chapter 13 

case to a Chapter 7 case on April 5, 2022. The parties agreed that the value of 

Goetz’s residence increased from $130,000 to $205,000 between the petition date 

and the conversion date. Between these dates, Freedom Mortgage’s mortgage lien

decreased to approximately $106,500. The parties stipulated that sale of Goetz’s

residence would result in more than $62,000 in proceeds after satisfying the 

mortgage lien and paying the $15,000 homestead exemption and costs of sale.

Prompted by indications that the Trustee planned to sell her residence, Goetz 

filed a Motion to Compel Trustee to Abandon Real Property of Debtor. The 

bankruptcy court denied the motion, finding that the increase in equity acquired 

1

The Honorable Brian T. Fenimore, United States Bankruptcy Judge for the 

Western District of Missouri. 
3 

between the petition date and the conversion date is property of the Chapter 7 

bankruptcy estate and concluding Goetz’s residence is worth more than 

“inconsequential value and benefit to the estate” under 11 U.S.C. § 554. Goetz 

appealed. With the consent of the parties, Amici Curiae National Association of 

Consumer Bankruptcy Attorneys and National Consumer Bankruptcy Rights Center 

filed a brief in support of Appellant, seeking reversal of the bankruptcy court’s order.

STANDARD OF REVIEW

We review the bankruptcy court’s findings of fact for clear error and its 

conclusions of law de novo. Ridings v. Casamatta (In re Allen), 628 B.R. 641, 642 

(B.A.P. 8th Cir. 2021) (citing In re Zepecki, 277 F.3d 1041 (8th Cir. 2002)). “Where 

the bankruptcy court has determined the factual predicates for abandonment are 

present, we review the court’s decision and reverse only in the case of an abuse of 

discretion.” Kaler v. Nelson (In re Nelson), 251 B.R. 857, 859 (B.A.P. 8th Cir. 

2000). Under this standard, this Court will not reverse without a definite and firm 

conviction that the bankruptcy court committed a clear error of judgment in 

weighing the relevant factors and in reaching its conclusion. Id. (citations omitted).

DISCUSSION

The issues Goetz raises on appeal fall within two primary arguments. First, 

she argues that the bankruptcy court erred in concluding that postpetition 

preconversion market appreciation and an increase in equity resulting from 

payments toward the mortgage lien inure to the estate’s benefit upon conversion 

from a Chapter 13 case to a Chapter 7 case. The Amici Curiae join in this argument. 

Second, she argues that her residence was removed from the bankruptcy estate when 

the property vested in her on confirmation of her Chapter 13 plan or when she 

exempted it, and she claims all equity accruing after these events inures to her 

benefit. 
4 

A. The bankruptcy court correctly concluded that postpetition 

preconversion nonexempt equity resulting from market appreciation and

payments toward a mortgage lien accrue for the benefit of the bankruptcy 

estate upon conversion from a Chapter 13 case to a Chapter 7 case.

Section 541 of the Bankruptcy Code defines property of the bankruptcy estate 

to include all of a debtor’s interests both equitable and legal, except those 

specifically excluded. 11 U.S.C. § 541. Estate property includes “[p]roceeds, 

product, offspring, rents, or profits of or from property of the estate, except such as 

are earnings from services performed by an individual debtor after the 

commencement of the case,” and “[a]ny interest in property that the estate acquires 

after the commencement of the case.” 11 U.S.C. § 541(a)(6) and (7). 

Upon conversion from one chapter to another, this definition is adjusted. 

Section 348 qualifies the scope of bankruptcy estate property by clarifying that 

“property of the estate in the converted case shall consist of property of the estate, 

as of the date of filing of the petition, that remains in the possession of or is under 

the control of the debtor on the date of conversion[.]” 11 U.S.C. § 348(f)(1)(A). If 

a debtor converts a case under Chapter 13 to a case under another chapter, the 

property the debtor acquired between the petition date and the conversion date is not 

property of the converted case, unless the debtor sought to convert the case in bad 

faith. 11 U.S.C. § 348(f)(2). 

On the date Goetz petitioned for relief under Chapter 13, her residence became 

property of the bankruptcy estate. The record shows no evidence of bad faith. Goetz 

remained in possession and control of her residence throughout her Chapter 13 case 

and on the date the bankruptcy court granted her motion to convert to a case under 

Chapter 7. Her residence is property of the converted bankruptcy estate. The 

question then becomes whether the increase in nonexempt equity resulting from 

market appreciation ($75,000) and a reduction in the mortgage lien ($960) is estate 

property or Goetz’s property. 
5 

As the bankruptcy court observed, courts are split on the question of whether 

postpetition preconversion market appreciation or an increase in equity resulting 

from payments toward a lien inures to a debtor’s benefit upon conversion to a 

Chapter 7 case. Goetz urges this Court to treat the postpetition preconversion 

increase in the value of her property as a separate interest that she acquired between 

petition and conversion. This position is supported by some courts, which find that 

postpetition appreciation in the value of an asset is a separate interest or “new equity” 

that inures to a debtor’s benefit upon conversion to a Chapter 7 case. See, e.g., In re 

Nichols, 319 B.R. 854, 856–57 (Bankr. S.D. Ohio 2004) (finding that postpetition 

earnings used to “purchase” “new equity” in existing estate assets are not property 

of the estate).

Applying a slightly different rationale, some courts find that equity in excess 

of exemptions should be determined as of the petition date and any equity accruing 

after that date inures to the debtor.2 These courts look to the legislative history for 

section 348 and consider policy-based reasons supporting their conclusion that 

2

See, e.g., Kendall v. Lynch (In re Lynch), 363 B.R. 101, 106 (B.A.P. 9th Cir. 

2007) (finding that equity resulting from debtors’ postpetition payments on loans 

secured by their residence and property appreciation inures to the debtors’ benefit 

upon conversion from Chapter 13 to Chapter 7); In re Barrera, 620 B.R. 645, 653

(Bankr. D. Colo. 2020), aff’d 2020 WL 5869458 (B.A.P. 10th Cir. 2020) (finding 

that a proper interpretation of “property” under section 348(f)(1)(A) “is the property 

as it existed on the petition date, with all its attributes including the amount of equity 

that existed on that date.” (emphasis in original)); Leo v. Burt (In re Burt), 2009 WL 

2386102, at *5 (Bankr. N.D. Ala. July 31, 2009) (“Section 348(f)(1)(A) establishes 

the original chapter 13 petition date as the date on which a hypothetical inventory is 

to be conducted to determine what property will be in the estate of the converted 

case. This Court is of the opinion that the amount of equity remaining after deducting 

secured claims encumbering such property should also be determined based on the 

secured claim outstanding on the petition date.” (footnote omitted)).
6 

equity created by a debtor’s plan payments or asset appreciation during the course 

of the Chapter 13 case is not property of the estate.3

Similar to the bankruptcy court in this case, other courts find that appreciation 

is not a distinct asset but rather a characteristic or attribute of property subsumed 

within a particular asset.4

 If the asset is property of the converted bankruptcy estate, 

the increase in equity—whether by appreciation or reduction of encumbrances—is 

also property of the estate, compelling these courts to conclude that postpetition 

preconversion equity increases inure to the benefit of the estate.

5

3

See In re Lynch, 363 B.R. at 106; In re Barrera, 620 B.R. at 653; In re Burt, 

2009 WL 2386102, at *5; see also In re Cofer, 625 B.R. 194, 202 (Bankr. D. Idaho 

2021). 

4

See In re Goetz, 647 B.R. 412, 416–17 (Bankr. W.D. Mo. 2022); In re Adams, 

641 B.R. 147, 151 (Bankr. W.D. Mich. 2022) (“The court regards the value of any 

property as an attribute or incident of the property, not a separate right or interest in 

the property.” (citation omitted); In re Castleman, 631 B.R. 914, 919 (Bankr. W.D. 

Wash. 2021) (“Post-petition appreciation is not treated as a separate asset from prepetition property and inures to the bankruptcy estate, not the debtor.” (citations 

omitted), aff’d 2022 WL 2392058 (W.D. Wash. 2022)); see also In re Hayes, No. 

113, Case No. 15-20727, slip op. at 9, 14 (Bankr. D. Colo. Mar. 28, 2019) (“Equity 

is merely a descriptive term for that portion of a debtor’s property which represents 

value in excess of encumbrances. Thus, the Debtors’ legal interest in the Property as 

of the Petition Date was the physical land and buildings comprising the Property.... 

Because the entirety of the Property is property of the estate, the entirety of the 

proceeds received from sale of the Property will be property of the estate, including 

the portion representing an increase in Debtors’ equity from appreciation.”); In re 

Goins, 539 B.R. 510, 516 (Bankr. E.D. Va. 2015) (“In the Court’s view, the cases 

under Section 541(a)(6) are applicable because the equity attributable to the postpetition appreciation of the property is not separate, after-acquired property, to 

which we might look to Section 348(f)(1)(A). The equity is inseparable from the real 

estate, which was always property of the estate under Section 541(a).”). 

5

See In re Adams, 641 B.R. at 151; In re Castleman, 631 B.R. at 919; In re

Hayes, No. 113, Case No. 15-20727, slip op. at 9, 14; In re Goins, 539 B.R. at 516.
7 

As these courts observed, section 348 does not specify whether postpetition 

preconversion equity resulting from debt payments or appreciation due to market 

conditions is property of the estate or property of the debtor. It simply refers to 

“property of the estate” and provides that “property of the estate in the converted 

case shall consist of property of the estate, as of the date of filing of the petition, that 

remains in the possession of or is under the control of the debtor on the date of 

conversion.” 11 U.S.C. § 348(f)(1)(A). When this statute is read in conjunction 

with section 541 and case law interpreting it, “property of the estate” includes all 

debtor’s interests, both legal and equitable, with some exceptions not applicable 

here. See 11 U.S.C. § 541 (defining property of the estate). As we have previously 

observed, “Nothing in Section 541 suggests that the estate’s interest is anything less 

than the entire asset, including any changes in its value which might occur after the 

date of filing.” Potter v. Drewes (In re Potter), 228 B.R. 422, 424 (B.A.P. 8th Cir. 

1999) (relying on section 541 to conclude that postpetition preconversion equity 

increases accrue to the benefit of the bankruptcy estate).6

 

Goetz and the Amici Curiae insist that section 348(f) is ambiguous. They urge 

the Court to consider legislative history, which they maintain supports their 

argument that postpetition preconversion equity increases should benefit debtors. 

We detect no ambiguity in sections 348(f) and 541. Even if we were to conclude

that section 348(f)(1)(A) is ambiguous, the legislative history of this statute does not 

mandate a different outcome.7

 Section 348(f)(1)(A), as enacted, accomplished the 

6

This conclusion is consistent with case law interpreting section 541 in the 

context of a Chapter 7 case that has not been converted. In this context, courts 

consistently find that an increase in nonexempt equity inures to the benefit of the 

bankruptcy estate. See Coslow v. Reisz, 811 F. App’x 980, 984 (6th Cir. 2020); 

Hyman v. Plotkin (In re Hyman), 967 F.2d 1316, 1321 (9th Cir. 1992); Schwaber v. 

Reed (In re Reed), 940 F.2d 1317, 1323 (9th Cir. 1991); In re Lents, 644 B.R. 479, 

489 (Bankr. D.S.C. 2022); In re Ostendorf, 2011 WL 1060992, at *1 (Bankr. D. 

Neb. Mar. 23, 2011); In re Moyer, 421 B.R. 587, 594 (Bankr. S.D. Ga. 2007); In re 

Shipman, 344 B.R. 493, 495 (Bankr. N.D. W. Va. 2006). 

7

The House Judiciary Committee’s report on the Bankruptcy Reform Act of 

1994 indicates that section 348(f)(1)(A) was enacted to:
8 

purpose of the legislation as articulated in the legislative history: it eliminated a 

“serious disincentive to [C]hapter 13 filings” by adopting the reasoning of In re 

clarify the Code to resolve a split in the case law about what property 

is in the bankruptcy estate when a debtor converts from chapter 13 to 

chapter 7. The problem arises because in chapter 13 (and chapter 12), 

any property acquired after the petition becomes property of the estate, 

at least until confirmation of a plan. Some courts have held that if the 

case is converted, all of this after-acquired property becomes part of the 

estate in the converted chapter 7 case, even though the statutory 

provisions making it property of the estate do not apply to chapter 7. 

Other courts have held that the property of the estate in a converted case 

is the property the debtor had when the original chapter 13 petition was 

filed. 

These latter courts have noted that to hold otherwise would create 

a serious disincentive to chapter 13 filings. For example, a debtor who 

had $10,000 equity in a home at the beginning of the case, in a State 

with a $10,000 homestead exemption, would have to be counseled 

concerning the risk that after he or she paid off a $10,000 second 

mortgage in the chapter 13 case, creating $10,000 in equity, there would 

be a risk that the home could be lost if the case were converted to 

chapter 7 (which can occur involuntarily). If all of the debtor’s property 

at the time of conversion is property of the chapter 7 estate, the trustee 

would sell the home, to realize the $10,000 in equity for the unsecured 

creditors and the debtor would lose the home.

This amendment overrules the holding in cases such as Matter of

Lybrook, 951 F.2d 136 (7th Cir. 1991) and adopts the reasoning of In

re Bobroff, 766 F.2d 797 (3d Cir. 1985). However, it also gives the 

court discretion, in a case in which the debtor has abused the right to 

convert and converted in bad faith, to order that all property held at the 

time of conversion shall constitute property of the estate in the 

converted case.

H.R. Rep. No. 103–835, at 57 (1994), as reprinted in 1994 U.S.C.C.A.N. 3340, 

3366.

 
9 

Bobroff and specifying that property a debtor acquires postpetition is not property of 

the converted bankruptcy estate. H.R. Rep. No. 103–835, at 57 (1994), as reprinted 

in 1994 U.S.C.C.A.N. 3340, 3366; see 11 U.S.C. § 348(f)(1)(A); Bobroff v. 

Continental Bank (In re Bobroff), 766 F.2d 797 (3d Cir. 1985). Section 348(f) does 

not specify that debtors are entitled to retain equity resulting from payments during 

the Chapter 13 case—the scenario referenced in the House Report. Likewise, the 

statute does not address whether debtors are entitled to retain postpetition 

preconversion equity resulting from market appreciation, asset improvements or 

repairs. To accept Goetz’s argument, one must read this clarification into the statute. 

The plain meaning of a statute is conclusive, except in the “‘rare cases [in 

which] the literal application of a statute will produce a result demonstrably at odds 

with the intentions of its drafters.’” Waugh v. Internal Revenue Serv. (In re Waugh), 

109 F.3d 489, 493 (8th Cir. 1997) (quoting United States v. Ron Pair Enters., Inc., 

489 U.S. 235, 242 (1989) (quoting Griffin v. Oceanic Contractors, Inc., 458 U.S. 

564, 571 (1982)). “‘In such cases, the intention of the drafters, rather than the strict

language, controls.’” Bank of Mo. v. Fam. Pharmacy (In re Fam. Pharmacy), 614 

B.R. 58, 66 (B.A.P. 8th Cir. 2020) (quoting Ron Pair, 489 U.S. at 242–43). Section 

348(f) is clear and consistent with legislative intent. See 11 U.S.C. 348(f); see also 

In re Castleman, 631 B.R. 914, 918–20 (Bankr. W.D. Wash. 2021); In re John, 352 

B.R. 895, 903–04 (Bankr. N.D. Fla. 2006). Congress’s failure to address the 

example included in the legislative history does not mean this omission was 

inadvertent. Recognizing that statutes are often the result of compromise, we decline 

to accept Goetz’s invitation to assume that Congress intended that debtors may retain 

postpetition preconversion market appreciation and equity resulting from debt 

payments without language articulating this intent. 

We also reject Goetz’s claim that interpreting section 348(f) to allow the 

bankruptcy estate to benefit from postpetition preconversion estate property value 

increases treats Goetz as though she converted her case in bad faith. To the extent 

Goetz acquired new property after she petitioned for bankruptcy relief under Chapter 

13, this property remains her property. In enacting section 348(f), Congress 

distinguished between property of the estate at the time of conversion that remains 
10

in the possession or control of the debtor from property acquired after petition. The 

former is property of the estate (Goetz’s residence), the latter is property of debtor 

unless she converted in bad faith. The bad faith provision neither hinders nor 

advances Goetz’s claim to the equity increase in her residence. It simply does not 

apply. Accordingly, the bankruptcy court correctly concluded that postpetition 

preconversion nonexempt equity accrues for the benefit of the converted Chapter 7 

estate. 

B. Goetz’s claim that she benefits from the increase in equity in her 

residence because her residence was removed from the bankruptcy estate is also 

rejected.

Goetz claims she is entitled to the equity increase in her residence because the 

residence was removed from the bankruptcy estate when she exempted it. 

Alternatively, Goetz argues that her residence and any nonexempt equity in it vested 

“in the debtor” upon confirmation under 11 U.S.C. § 1327(b) and the confirmation 

order, removing it from the converted bankruptcy estate. She claims the appreciation 

in her residence occurred after the property vested and she is entitled to retain this 

value. Although the bankruptcy court did not specifically address these claims, it 

implicitly rejected them when it declared, “There can be no question about whether 

the residence is property of the converted chapter 7 estate—it is. And because the 

post-petition equity in Goetz's residence is inseparable from the residence itself, the 

post-petition equity is also property of the chapter 7 estate.” In re Goetz, 647 B.R. 

412, 418 (Bankr. W.D. Mo. 2022). Neither party highlighted the bankruptcy court’s

failure to specifically address these arguments or requested remand due to this

omission. However, Goetz devoted many pages of her brief to them. Because these 

arguments raise questions of law, we exercise our discretion to address them in the 

first instance.8

 

8

When a trial court neglects to address an issue, but the facts are undisputed, 

the parties exclusively argue questions of law, and the review is de novo, appellate 

courts may exercise discretion to decide legal issues in the first instance. See

Zaldivar Anzardo v. U.S. Att’y Gen., 835 F. App’x 422, 428 (11th Cir. 2020); 

Bokenfohr v. Gladen, 828 F. App’x 485, 486, n.3 (9th Cir. 2020); Kistner v. L. Off. 
11

Goetz’s reliance on section 1327 and the confirmation order to support her 

claim that her residence is no longer property of the bankruptcy estate is misplaced. 

While it is true that property vested in Goetz when the bankruptcy court confirmed

her Chapter 13 plan, neither section 1327(b) nor the relevant provision of the 

confirmation order applies in the converted Chapter 7 case. See 11 U.S.C. § 103(j) 

(“Chapter 13 of this title applies only in a case under such chapter.”); Harris v. 

Viegelahn, 575 U.S. 510, 520 (2015) (“When a debtor exercises his statutory right 

to convert, the case is placed under Chapter 7’s governance, and no Chapter 13 

provision holds sway.”). Rather, section 348 governs the scope of estate property 

upon conversion. See 11 U.S.C. § 348; In re Cofer, 625 B.R. 194, 198 (Bankr. D. 

Idaho 2021) (“In sum, sound statutory interpretation and the relevant authorities 

support the conclusion that the plain language of § 348(f)(1)(A) revests in the estate 

of the converted case all property of the estate of the original filing still in the 

possession or control of Debtor despite the provisions of § 1327.”). Because Goetz’s 

interpretation ignores section 348(f)(A)(1), it is rejected.

Her assertion that she removed her residence from the bankruptcy estate when 

she claimed the homestead exemption is likewise rejected. Citing to stipulated facts, 

Goetz maintains there was no value in her residence available to the bankruptcy 

estate on the date she petitioned for bankruptcy relief. She asserts that any equity in 

the residence was “removed” or “withdrawn” from the estate when she claimed her 

homestead exempt and no interested party objected to the exemption. Citing cases 

ruling that exempt property is not property of the estate, Goetz insists any increase 

in equity between the petition date and the conversion date inures to her benefit 

because the residence is no longer property of the estate. 

of Michael P. Margelefsky, LLC, 518 F.3d 433, 438 (6th Cir. 2008); Hill v. 

Peoplesoft USA, Inc., 412 F.3d 540, 544 n.* (4th Cir. 2005); Savard v. Rhode Island, 

320 F.3d 34, 38 (1st Cir. 2003), on reh'g en banc, 338 F.3d 23 (1st Cir. 2003); 

Roberts v. Van Buren Pub. Sch., 773 F.2d 949, 955 (8th Cir. 1985); see also Planned 

Parenthood of Greater Wash. & N. Idaho v. U.S. Dep’t of Health & Hum. Servs., 

946 F.3d 1100, 1112 (9th Cir. 2020). 
12

Goetz’s eligibility for the Missouri homestead exemption is determined as of 

the date of the Chapter 13 petition. See Alexander v. Jensen-Carter (In re 

Alexander), 236 F.3d 431, 433 (8th Cir. 2001). On the petition date, Goetz valued 

her residence at $130,000. After deducting the $15,000 homestead exemption and 

the debt secured by a mortgage lien, there remained $7,539.46 in equity. On the 

conversion date, the value of the house increased to $205,000 and the debt against 

the home decreased, leaving approximately $83,000 in equity. We are not convinced 

that the sum of nonexempt equity in Goetz’s residence on the petition date governs 

whether it is property of the estate or determines the value of the estate’s interest in 

the property at the time she sought to compel abandonment of the property under 

section 554. 

Section 513.475 of the Missouri Revised Statutes entitles Goetz to exempt a 

house, appurtenances and land “not exceeding the value of fifteen thousand dollars” 

that is used as a homestead. See Mo. Rev. Stat. § 513.475(1). The parties stipulated 

that Goetz claimed and was entitled to a $15,000 homestead exemption. To the 

extent the equity in this property is more than $15,000, it is not exempt. Stated 

another way, section 513.475 entitles Goetz to “remove” from the estate only a 

portion of the value of the homestead—equity in the maximum sum of $15,000. It 

is not an in-kind exemption; it does not entitle Goetz to remove the dwelling house 

and appurtenances, and the land in its entirety. As explained by the court in In re 

Adams, “In effect, most exemptions which entitle a debtor to a representative value, 

measured by former ownership of particular property, operate as a charge against 

that property, much like a lien to secure payment of the specified amount, rather than 

title to the thing itself.” 641 B.R. 147, 153 (Bankr. W.D. Mich. 2022); see generally

Schwab v. Reilly, 560 U.S. 770, 783–84, 794–95 (2010) (finding that under sections 

522(5) and (6), the debtor may claim his aggregate interest in the business equipment 

he sought to exempt, not the equipment per se and explaining that the estate may 

preserve its right to retain any value in the equipment beyond the value of the exempt 

interest). Accordingly, Goetz’s homestead exemption did not remove the residence 

from the bankruptcy estate. Further, Goetz’s $15,000 homestead exemption was 

consistent with the Missouri statutory limit and, therefore, facially valid. The 
13

Trustee’s failure to object to the exemption claim does not preclude him from 

pursuing the nonexempt equity. See Schwab, 560 U.S. at 774 (noting that because 

the exemption was facially valid, the Trustee was not compelled to object “to 

preserve the estate’s ability to recover value in the asset beyond the dollar value the 

debtor expressly declared exempt.”). 

Importantly, this dispute arises in the context of a motion to compel 

abandonment. The use of present tense in the text of section 554 suggests courts 

must consider the current value or benefits of the property sought to be abandoned. 

See 11 U.S.C. § 554(b) (“On request of a party in interest and after notice and a 

hearing, the court may order the trustee to abandon any property of the estate that is

burdensome to the estate or that is of inconsequential value and benefit to the 

estate.”) (emphasis added); see also Coslow v. Reisz, 811 F. App’x 980, 984 (6th 

Cir. 2020); In re Adams, 641 B.R. at 152–53. Also, section 554 “says nothing about 

looking to the ‘commencement of the case’ to determine value” and “every court 

confronted with an analogous abandonment dispute has looked to the equity 

contained in the debtor’s property at the time the abandonment motion came before 

it, rather than at some static moment in the past.” Coslow, 811 F. App’x at 984

(citation omitted). Consequently, Goetz’s claim that her homestead exemption claim 

limited the estate’s interest in her residence to its value on the petition date is not 

persuasive. 

CONCLUSION

For the reasons stated, the bankruptcy court correctly concluded that the 

postpetition preconversion equity increase in Goetz’s residence is property of the 

bankruptcy estate. The parties stipulated that sale of Goetz’s residence would result 

in more than $62,000 in proceeds after satisfying the mortgage lien and paying the 

$15,000 homestead exemption and costs of sale. The bankruptcy court’s 

determination that this sum is “of more than inconsequential value and benefit to the 

estate” was not an abuse of discretion. We affirm the bankruptcy court’s decision 

to deny Goetz’s Motion to Compel Trustee to Abandon Real Property of Debtor. 

______________________________