Increase in home equity

A family member who lives in Ontario filed for bankruptcy two years ago.  The only equity was a small amount of equity in his home based on an appraisal at the time of filing for bankruptcy.  He will pay this equity into the estate in order to keep his house.  Discharge has been held up due to unresolved objections from a creditor. 

In the meantime the bankrupt - who has quite low income - has qualified for a government grant to repair his home. This will increase the value of the home.  Also, house prices have generally increased over the two year period.

I have two questions:

1) Will he be required by the trustee to get a new appraisal as a result of this?  That would probably make it impossible for him to raise sufficient funds to pay into the estate.

2) How do people usually find financing to pay equity into the estate if they are bankrupt?  Is family money the usual way?

Any information would be very much appreciated.

Firstly, if this individual is getting a government grant in cash, this might be considered income for the purposes of the bankruptcy, but since I don't know the specifics, it's hard to give an opinion.

There have been a few recent cases regarding an increase in the value of the property during bankruptcy generally. The trustee may require a new appraisal of the house, but that isn't a given. The bottom line is that if the work is done, more equity may become available to the creditors and the trustee is required to realize on that equity.

With respect to financing, this can be done via payments over a period of time, for example via a conditional order of discharge. If I recall correctly, the trustee can put a lien on the house and continue to take payments after the discharge.