PROGRAM SUMMARY 5-2-2026

CDCBAA Holds Fourth Meeting and MCLE Program of 2026:
"MEET THE CHAPTER 13 TRUSTEES”

On May 2, 2026, the CDCBAA held its fourth members meeting and MCLE program of the year. The meeting and program were conducted as a live webinar via Zoom video.  The program topic was MEET THE CHAPTER 13 TRUSTEES. Our distinguished speakers were Renee Blume | Staff Attorney for Chapter 13 Trustee, Elizabeth Rojas; Aki Koyama | Senior Staff Attorney for Chapter 13 Trustee, Kathy Dockery; Sean O'Hair | Staff Attorney for Chapter 13 Trustee, Nancy Curry; and Brian Wirsching | Staff Attorney for Chapter 13 Trustee, Amrane Cohen. Nancy Clark | Borowitz & Clark, LLP moderated. What follows are some highlights.

After introductions, Mr. Koyama began the seminar by discussing the Saldana case (In re Saldana (Saldana v. Bronitsky) 122 F. 4^th 333 (9^th Cir. 2024) in which the Ninth Circuit held that voluntary contributions by a debtor to an employer-managed retirement accounts can be deducted from disposable income if they are made in “good faith.” A lengthy discussion then ensued regarding what qualifies as “good faith” for such deductions.

The next case discussed by the panel was Mission Hen, LLC v. Lee 137 F. 4^th 1008 (9^th Cir. 2025) which concerns valuation, eligibility and feasibility. It was observed that In re Scovis still applies such that “eligibility should normally be determined by the debtor’s originally filed schedules checking only to see if the schedules were made in good faith.”  

The panel agreed that, except for possibly San Bernardino and Riverside Counties, the homestead exemption cap is currently $743,681 in the Central District.

The panel next discussed In re Rey, 657 B.R. 634 (B.A.P. 9^th Cir. 2024). There, the Bankruptcy Appellate Panel (BAP) for the Ninth Circuit ruled that California’s automatic homestead exemption cannot be extended to a separate residential structure on the same legal parcel if that structure is rented out to third parties. The court rejected the argument that two separate structures on a single legal plot must be treated as one single homestead unit just because they share the same parcel of land. The impact in a Chapter 13 is that, for purposes of the liquidation analysis under Section 1325(a)(4), the homestead exemption does not necessarily protect the entire value of the lot that the debtor’s homestead sits on.

The panel then discussed the newly revised CCP Section 704.225, which now states that: “Money in a judgment debtor’s deposit account that is not otherwise exempt under this chapter is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.” This new language has already been the subject of at least one recent decision: Thomas vs. Gonzalez 4/7/26 WL 939207 BAP. The panel noted that disputes concerning this exemption will likely be fact driven and will, thus, require evidentiary hearings.

The panel also discussed the Civil Code section 2924m and all agreed that this area of law has now become extremely confusing and not especially helpful to anyone. Furthermore, the several published cases that have opined on it (see, e.g., most recently, In re Garcia, BAP No. CC-25-1095-NSC (9^th Cir. BAP Feb. 3, 2026), are not particularly helpful in clearing up the confusion.  There is a strong feeling that this code section will be repealed or substantially revised prior to its currently planned 2031 sunset.

The panel also discussed post-petition property of the estate and the judicial estoppel doctrine. Pertinent case law included In re Keathley (Keathley v. Buddy Ayers Construction, Inc.) 24-60025 (5^th Cir. March 3, 2025) and New Hampshire v. Maine, 532 U.S. 742 (2001).

The next CDCBAA members meeting and Zoom MCLE program will be held on June 6, 2026, and the topic will be Program 1-PASSING THE TORCH: Law Practice Wind-Down & Protecting Your Legacy | Program 2-MCA's in Bankruptcy. Our speakers will be Amanda M. Moghaddam | Claims Attorney, Lawyers Mutual Insurance Co. for Program 1 and Steven J. Mirsky | Mirsky Corporate Advisors, APC, Newport Beach, CA; and M. Jonathan Hayes | Senior Counsel, RHM LAW LLC for Program 2. 2.0 hours of CLE credit will be provided. We hope you will join us.