Following receipt of a discharge and closing of her chapter 13 case, the debtor obtained a disability discharge of her student loans. The unsecured, student loan creditors then refunded funds that had been disbursed to the student loan creditors by the chapter 13 trustee pursuant to the debtor’s chapter 13 plan. The chapter 13 trustee moved to reopen the case to redistribute these funds to the other general unsecured creditors. The debtor objected to the proposed distribution and requested that the funds be returned to her. The debtor also moved to file an amended plan to decrease the base gross and to provide for the funds to be returned to her. The Court granted the motion to reopen. The Court ruled that the trustee had to disburse the funds to the other general unsecured creditors and that the debtor could not modify her plan pursuant to section 1329.
Friday, March 15, 2019
Chapter 13 Issues