18 Collier bankr.cas.2d 523, Bankr. L. Rep. P 72,222 in Re William R. Probasco Joan Probasco Eddie McKinney Thelma Jo McKinney Bill J. Eads Patsy M. Eads, Debtors. William R. Probasco Joan Probasco Mid Valley Time Loan Robert C. Arnold, as Disbursing Agent Under the Plan of Reorganization v. Bill J. Eads Patsy M. Eads

839 F.2d 1352 18 Collier Bankr.Cas.2d 523 , Bankr. L. Rep. P 72,222 In re William R. PROBASCO; Joan Probasco; Eddie McKinney; Thelma Jo McKinney; Bill J. Eads; Patsy M. Eads, Debtors. William R. PROBASCO; Joan Probasco; Mid Valley Time Loan; Robert C. Arnold, as Disbursing Agent under the Plan of Reorganization, Appellants, v. Bill J. EADS; Patsy M. Eads, Appellees. No. 87-1617. United States Court of Appeals, Ninth Circuit. Argued and Submitted Nov. 12, 1987. Decided Feb. 22, 1988. Michael A. Milnes, Fresno, Cal., for appellants. Frank H. Lang, Jr., and David Jenkins, Fullerton, Lang, Richert & Patch, Fresno, Cal., for appellees. Appeal from the Ninth Circuit Bankruptcy Appellate Panel. Before SNEED, POOLE and BOOCHEVER, Circuit Judges. BOOCHEVER, Circuit Judge: 1 Appellant William R. Probasco (Probasco) appeals from the Bankruptcy Appellate Panel's order, 69 B.R. 730 , affirming the bankruptcy court's judgment that Bill J. Eads (Eads), as debtor in possession, could assert 11 U.S.C. Sec. 544 (a)(3) (Supp. IV 1986) to avoid Probasco's unrecorded one-half interest in Parcel 1 of the Quail Meadows development. The controlling issue on appeal is whether a debtor in possession…