When a bankruptcy court has applied an incorrect legal standard to a debtor, what are the consequences of vacating a decision and remand?

federal, United States of America

The following excerpt is from Diaz v. Kosmala (In re Diaz), 547 B.R. 329 (B.A.P. 9th Cir. 2016):

When the bankruptcy court has applied an incorrect legal standard, we typically vacate the decision and remand so that the bankruptcy court can apply the correct law to the facts. Calderon v. Lang (In re Calderon), 507 B.R. 724, 733 (9th Cir. BAP 2014).

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