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From the Editor’s Desk – Conversion and Dismissal
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By The Honorable William Houston Brown (Retired)
Bad faith conversion resulted in postpetition inheritance being property of Chapter 7 estate. Three years after filing Chapter 13, the debtors voluntarily converted to Chapter 7, and the Chapter 7 trustee moved for determination that the conversion was in bad faith. One debtor had been named prepetition as trustee of his mother’s irrevocable trust and he was a beneficiary of the trust upon her postpetition death. That debtor received a share of the proceeds from the trust’s sale of real property but he did not notify the . . .
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