Money in the bank preconversion
Posted: Tue Aug 28, 2012 8:41 am
For what it is worth, I always thought that Code Section 348 controls this situation. As I am sure you know, it provides that property of the estate in the converted case "consists of property of the estate, as of the date of filing of the petition, that remains under the possession or control of the debtor on the date of conversion". So if the Debtor spent the money in the account for some legitimate purpose while in the 13, it would appear that the Chapter 7 trustee would not be able to recover it.
>
> You didn't miss it. I should have put it in there. But if you assumed
> that I'd already used up all my exemption amount, you were correct.
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> I also checked and only $600 of unsecured debt was paid in the 13, so I
> guess I have to dismiss the case and refile it. It's too bad, because I
> learned that the $27,000 of cash he had in the account was just borrowed
> money from a friend that he returned postpetition, thinking he may have
> to use it for payoff of his mortgage.
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> I didn't care about the lack of exemption because it was a 100% plan.
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> Of R Grace Rodriguez
> Sent: Saturday, August 25, 2012 4:19 PM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Money in the bank preconversion
>
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> Did I miss the part where you said it wasn't exempted in the Chapter 13
> and that's why upon conversion the Trustee can ask for the funds?
>
> On Thu, Aug 23, 2012 at 3:38 PM, Steven B. Lever
> wrote:
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>
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> I am converting a 13 to a 7 and there was about $7,500 in the bank a
> year ago when it was a 13. The money is long gone.
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> I know theoretically the Chapter 7 Trustee can ask for the funds, but do
> they actually? Is it better to just dismiss and refile to save that
> $7,500?
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>
>
> Steve
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>
>
> Law Offices of Steven B. Lever
>
> >
>
> > Steven B. Lever
>
> >( Tel. (562) 436-5456 ext. 1
>
> >( Fax (562) 485-6886
>
> >* sblever@...
>
> > www.leverlaw.com
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>
> --
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