[CLBS] Harris v. Veigelahn: Undistributed Money in a Post-Confirmation Good Faith Conversion from Chapter 13 to 7 go to the Debtor

[Alexandra Caval]

Harris v. Viegelahn is a SCOTUS decision that came out 5/18/15. The case
resolves a split between the Third & Fifth Circuits about what happens to
funds held by a Chapter 13 trustee when a debtor converts from Chapter 13 to
Chapter 7 in good faith post-confirmation. The Third Circuit ruled that the
funds are refunded to the debtor whereas the Fifth Circuit ruled that the
funds are to be distributed to creditors. The Supreme Court unanimously
reversed the Fifth Circuit holding that, absent bad faith, any undistributed
money held by a chapter 13 trustee must be returned to the debtor rather
than to creditors based on the language of 348(f) and the termination of a
chapter 13 trustee's services upon conversion under 348(e). Attached is the
decision.

 

Alexandra O. Caval

Caval Law Office, P.C.

P.O. Box 1716

Twin Falls, ID 83303-01716

T: 208.733.2035

F: 208.733.3919

 <mailto:alex at cavallawoffice.com> alex at cavallawoffice.com

 

 

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