United States Third Circuit

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In re Barry L. Michael, 11-1992

Following debtor's conversion of his case from a Chapter 13 adjustment of debts under a reorganization plan to a Chapter 7 liquidation of assets and distribution to creditors, district court's holding that the funds held by the trustee, acquired post-petition by the debtor for eventual distribution to creditors under a confirmed Chapter 13 reorganization plan, must be returned to the debtor at the time of the conversion is affirmed where: 1) when the plan was no longer feasible, the debtor exercised the right to convert his case to Chapter 7 and sought the return of his post-petition earnings still in the trustee's possession; and 2) because there is no evidence that the debtor converted in bad faith, those funds are his property by virtue of section 348(f), and should not be distributed to his creditors.

Appellate Information

  • Decided 10/26/2012
  • Published 10/26/2012


  • Ambro


  • United States Third Circuit


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