Non-Exempt Cash in Chapter 13: Vested or Not?

By Tiffany S. Franc, Esq. Staff Attorney to Nancy Spencer Grigsby, Chapter 13 Trustee

In a recent Maryland Chapter 13 case, Debtors were funding a 100% payout to unsecured creditors over a period of 60 months. However, Debtors had non-exempt cash funds of $29,553.97 in their bank account. While not sufficient to pay 100% to their creditors alone, the non-exempt cash was a substantial sum that could be paid much earlier than the proposed 60-month Chapter 13 plan. As Maryland has adopted vesting language contrary to § 1306 and does not provide for vesting . . .

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