So, Who Gets the Money? Section 1326

By Holly Davala, Attorney Representing the Chapter 13 Trustee for the Northern District of Ohio, Eastern Division (Cleveland, OH)

When a case is dismissed after confirmation the funds on hand are to be disbursed according to the plan. The Handbook for Chapter 13 Standing Trustees (Eff. October 1, 2012) states, “If the case is dismissed or converted post-confirmation, the standing trustee must distribute any funds on hand in accordance with the controlling law of the jurisdiction. 11 U.S.C. Section 1326(a).” According to Section 1326 of the Bankruptcy Code these funds are to be distributed . . .

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