341 tomorrow question about debtor check

[adina]

we filed chapter 13 in July it was not confirmed and we converted to a 7. however we had already made the first payment of 1265.00 to the original trustee. That trustee closed the case and took 250 for admin fees and forwarded the check to the new chapter 7 trustee. our schedules have the amount exempt. My question is will the chapter 7 trustee give us the check we are a no asset case and the check is addressed to us and was issued 10.29 anyone have any insight on this one.

[despritfreya]

This pisses me off. Your Chapter 13 Trustee had absolutely NO authority to send those funds to the Chapter 7 Trustee. 11 USC 1326(a)(2) specifically directs that the Trustee SHALL return funds TO THE debtor if the Plan has not been Confirmed or said funds have not otherwise been paid to creditors. This is not discretionary. Those funds should not have been turned over to the 7 Trustee.

I just dealt with this and I hit the roof when the money was sent to the 7 Trustee. After threatening suit the funds were returned to the 13 Trustee and have since been sent to my client.

Send the 7 Trustee a certified letter directing that the check (which is in your name) is to be immediately forwarded to you.

Des.

[adina]

Thank you for the information. I am looking into it right now

[drowning123]

I like Des.

[oregonpilot]

ME too.
Des, It is so cool that you are here to help us!

ahh....bet you didn't know you had a fan club!!

[despritfreya]

. . .bet you didn't know you had a fan club!!

Fan club. . . thanks but. . . What you don't realize is that this forum is as therapeutic to me as it may be helpful to others.

Des.