11 USC 348 Effects of Conversion
Posted: Sat Feb 03, 2018 5:14 pm
I have a Chapter 13 client who lost her job and was given a large severance.
She has spent the severance down to the amount of wildcard she has left, and I'm considering filing her soon.
11 USC 348 only makes property received post-conversion property of the estate if it was done in "bad faith" which is hard to argue in a case where she lost her job. She has pretty much just been using the severance to live off of.
I also take comfort in the BAP ruling in Warfield v. Salazar (In re Salazar) 465 BR 875 (9th Cir. BAP March 2012) in which a tax refund gained postpetition and spent before converting was ruled not subject to a turnover order.
So my questions are:
1. Do I even need to disclose these additional funds in an amended Schedule B?
2. Am I missing anything else, such as means test issues since she did not pass it when filing originally?
3. Assuming there are no red flags, does anyone have a good 13 to 7 checklist? I guess I'll get one from the Court at some point, but I'd like to be ahead of the curve.
Thank you
Steve
Law Offices of Steven B. Lever
I have a Chapter 13 client who lost her job and was given a large severance.
She has spent the severance down to the amount of wildcard she has left, and I’m considering filing her soon.
11 USC 348 only makes property received post-con
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