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

[rgreenwood at greenwoodlaw.com]

This will bring a tear to the eye of all those CH 7 trustees out there.

Original email:
-----------------
From: Alexandra Caval alex at cavallawoffice.com
Date: Thu, 21 May 2015 11:34:52 -0600
To: CLBS at admws.idaho.gov
Subject: [CLBS] Harris v. Veigelahn: Undistributed Money in
aPost-Confirmation Good Faith Conversion from Chapter 13 to 7go to the
Debtor


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

 

 

PRIVILEGE AND CONFIDENTIALITY NOTICE 
This e-mail is intended only for the use of the recipient named and may
contain information that is confidential, privileged, and exempt from
disclosure under applicable laws. If you are not the named recipient, you
may have received this transmission in error. We ask that you immediately
notify the sender and remove this and all attached file(s) from your system.
Receipt by anyone other than the intended recipient is not a waiver of the
attorney-client or work-product privileges. You are hereby notified that any
disclosure, copying, distribution, or use of any of the information
contained in this transmission if you are not the intended recipient is
prohibited and may expose you to liability.

 

 



--------------------------------------------------------------------
mail2web.com - Microsoft Exchange solutions from a leading provider -
http://link.mail2web.com/Business/Exchange