Viegelahn v. Harris, III, No. 13-50374 (5th Cir. 2014)
Annotate this CaseDebtor filed a bankruptcy petition under Chapter 13, made regular payments from his wages to the trustee under a confirmed Chapter 13 plan, and eventually converted his case to Chapter 7. At issue was whether the undistributed payments held by the Chapter 13 trustee at the time of conversion should be returned to the debtor or distributed to creditors under the Chapter 13 plan. The court concluded that the creditors' claim to the undistributed funds is superior to that of the debtor. Accordingly, the payments must be distributed to creditors in this case. The court reversed and remanded.
The court issued a subsequent related opinion or order on June 24, 2015.
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