In re Ezzell (Case No. 14-51082)

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Debtors converted their Chapter 13 case to a Chapter 7.  Certain of  the funds held by the Chapter 13 Trustee were pursuant to an agreement not to pursue a preference claim against the male Debtor's parents under sections 547 and 550 of  the Bankruptcy Code.  The source of these funds collected were postpetition wages.  The Debtors agreed to have $3,600 remitted directly to the Chapter 7 Trustee in contemplation of the preference agreement.  The Court declined to find that the funds collected but not disbursed were prepetition property .  Under the recent Supreme Court decision, Harris v. Viegelahn, _U.S._, 135 S.Ct. 1829 (2015) postpeitition wages were to be remitted to the Debtors, but in this instance funds were remitted directly to the Chapter 7 Trustee in light of the Debtors' agreement.

Date: 
Monday, July 6, 2015
Published: 
No
Index Heading: 
Conversion