Who Gets the Money?

By The Honorable William Houston Brown (Retired)

On December 13, the Supreme Court granted certiorari from the Fifth Circuit’s decision in Viegelahn v. Harris (In re Harris), 757 F.3d 468 (5th Cir. 2014), presenting the issue to the Court of who gets the undistributed funds held by the Chapter 13 trustee when the case is converted in good faith to Chapter 7 after confirmation. The Fifth Circuit held that those funds must be paid to creditors, pursuant to the terms of the confirmed plan, but the Third Circuit had held, in In re . . .

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