Debtor Is Not Entitled to Post-Petition Appreciation in Assets Beyond Exemptions

A bankruptcy court did not err in concluding that a Chapter 7 debtor exempted only an interest in oil and gas leases rather than in the asset itself and, thus, was entitled to only the dollar amount listed as wildcard exemptions in Schedule C and not to any future appreciation in value, the U.S. Court of Appeals for the Third Circuit held July 20 (In re Orton, 3d Cir., 11-4157, 7/20/12).

Affirming the decisions of the bankruptcy court and district court, Judge Ruggero J. Aldisert concluded that because the debtor did not fully exempt his interest in ...