What happens to all the money that was already paid in 13 for the past 6 months?
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Chapter 13 converted to 7
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No. It does not to your laywer or you. The process, in the Federal Rules of Bankruptcy Procedure, is for the Chapter 13 Trustee to turn over all funds immediately to the Chapter 7 Trustee.
The technique I have seen used in many Districts is for your attorney to file a Motion to Turnover Trustee Funds about a week or two after conversion. This is served on the Chapter 7 Trustee. Basically, the Chapter 13 funds are "not" part of the Bankruptcy Estate by definition. This has seemed to work well across several Districts in Florida.
There are other specific rules based on whether this is pre or post confirmation.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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