In re Trombetta

OPINION

KENNETH J. MEYERS, Bankruptcy Judge.

This case presents the issue of whether the priority, unsecured creditors of a chapter 13 debtor are entitled to benefit from the increase in estate value realized when encumbered property is released from a hen through an avoidance action, or whether the value recovered through the hen avoidance action is required to be distributed solely to a debtor’s general, unsecured creditors. The chapter 13 trustee in this case objects to plan modification on the basis that this Court’s decision in McRoberts v. Transouth Financial (In re Bell), 194 B.R. 192…