In re Beckman

Good Law
2015 WL 5297726·2015 Bankr. LEXIS 3079·536 B.R. 446·74 Collier Bankr. Cas. 2d 518
United States Bankruptcy Court, Southern District of CaliforniaSeptember 8, 2015Case No. 14-07656-LA7California1,487 words

Opinion

Lead Opinion

Adler, J.

*447 MEMORANDUM DECISION ON TRUSTEE’S MOTION FOR DETERMINATION RE: FUNDS ON HAND IN CONVERTED CASES

I.

INTRODUCTION

David Skelton, the former Chapter 13 trustee (“Mr.Skelton”) in the chapter 13 bankruptcy case of Kari Lynn Beckman (“Debtor”), brings this Motion for Determination Re: Funds on Hand in Case Converted from Chapter 13 (“Motion”). Mr. Skelton seeks this determination due to the United States Supreme Court’s opinion in Harris v. Viegelahn, - U.S. -, 135 S.Ct. 1829, 1835 , 191 L.Ed.2d 783 (2015), holding that under the governing provisions of the Bankruptcy Code, a debtor who converts from a Chapter 13 to a Chapter 7 ease is entitled to a return of any postpetition wages not yet distributed by the Chapter 13 trustee.

Mr. Skelton questions whether the Harris holding applies where (as here) the Debtor converted her case prior to plan confirmation. In such cases, his prior practice was to disburse the accumulated plan payments to the adequate protection creditors and administrative expense creditors pursuant to the mandates in this Court’s General Order 175-D and § 1326(a)(2). Mr. Skelton does not want to violate these mandates. Therefore, he seeks instructions as to…

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