4TH Circuit to Beneficiaries in Chapter 13: Pay Up

By Mark C. Leffler, Boleman Law Firm, P.C., Richmond, Hampton, and Va. Beach, VA

A previous article explored the subject of how different courts respond when Chapter 13 debtors receive windfalls, with special focus on inheritances and life insurance proceeds received more than 180 days after the bankruptcy filing date. The scenario presents itself occasionally and raises a number of issues. For example, does a Chapter 13 estate cease to exist at confirmation, or does it continue to accrue . . .

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