Victory for Chapter 13 Bankruptcy Filers Who Convert to Chapter 7
In a victory for bankruptcy filers, yesterday, the U.S. Supreme Court resolved a split among the Courts of Appeal in Harris v. Viegelahn, 575 U.S. __ (2015). The ruling affects people who file for Chapter 13 bankruptcy and then, before completing the Chapter 13 plan, convert the case to a Chapter 7 bankruptcy. The Supreme Court said that if the bankruptcy trustee has plan funds on the date of conversion that he or she has not yet distributed to creditors,…