§ 1326

In re Bailey

After the debtors'chapter 13 case was dismissed, but before movant chapter 13 trustee could distribute the accumulated plan payments to the debtors, a creditor served the trustee with a garnishment under Oregon law. The trustee moved for instructions on whether the trustee was required to honor the state law garnishment for the plan payments collected prior to dismissal.
Debtors were entitled to return of funds held by a trustee following dismissal of their unconfirmed chapter 13 case over a creditor's state garnishment claim.
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