Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of Tennessee

In re Michael, 699 F.3d. 305 (3rd Cir., Oct. 26, 2012)

When a Chapter 13 case converts to a Chapter 7 post-confirmation, the funds held by the trustee at the time of conversion should be sent to the debtor rather than distributed to creditors pursuant to the confirmed plan. (Ambro)

Case Summary

Mr. Michael filed a Chapter 13 petition proposing to pay GMAC mortgage directly while paying the Chapter 13 Trustee $277 a month for a period of 53 months. As could . . .

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