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From the Editor – Dismissal and Conversion
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By The Honorable William Houston Brown (Retired)
Undistributed funds in confirmed case are property of creditors. Reviewing split of judicial authority, the court distinguished In re Michael, 699 F.3d 305 (3d Cir. 2012), in part on the basis that it involved a plan in which re-vesting occurred on confirmation. Here, the confirmed plan provided that property did not re-vest in debtors until plan completion. The court concluded that whether the debtors or creditors received undistributed funds upon conversion to Chapter 7 was a question of law, and nothing in the Code . . .
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