Legal Question in Bankruptcy in North Carolina

Probably. I assume that the plan has been confirmed. The question is whether or not there is net income after expenses from the rentals. If there is an increase in income, that amount must be committed to the plan, unless the plan allows for and specifies discharge with the payment of all the secured and priority creditors and the given percentage of unsecured creditors. If the plan is not so structured, then the unsecured creditors will get a boost in dividend in the amount of the monthly income times the remaining months left in the plan. The issue of the fair market value of the asset is moot because the value of the estate is determined as of the date of the confirmation. If the plan has not been confirmed then the income goes back into the B22 (means test) or I-J schedule net disposable income calculation and the debtor's interest in the net fair market value is considered in confirmation to determine if the creditors received as much or more as they would in a liquidation. Obviously, you must disclose these events to your lawyer and to the court and trustee.