NACBA files Amicus in Conversion Case

Posted by NCBRC - October 25, 2011

NACBA filed an Amicus brief in the case of DeHart v. Michael, No. 11-1992 (3d Cir.). The case involves a debtor who converted his chapter 13 case to a chapter 7 after paying into his plan for several years. At the time of the conversion, the estate held some undistributed post-petition wages and the trustee argued that the creditors had a vested right to those funds. The lower courts rejected this argument and the trustee brought this appeal. NACBA’s brief argues that, under section 348(f)  a chapter 7 estate that has been converted from chapter 13 consists of the property owned by the debtor at the time of the original chapter 13 petition, and, therefore, the debtor is entitled to return of his post-petition wages.
NACBA member, Irv Ackelsberg, filed the brief on behalf of NACBA.

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