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§ 348(f)(2)

In re Lien

Mar
16
2015
Ruling
Property of converted chapter 13 case ordered to become property of subsequent chapter 7 case where debtor converted the case in bad faith to avoid paying inheritance to trustee.
Issue(s)
Was debtors' conversion of case from chapter 13 to chapter 7 done in bad faith so that an inheritance received by the debtors while the case was in chapter 13 was property of the chapter 7 bankruptcy estate and subject to turnover?

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Consumer opinion summary, case decided on March 16, 2015 , LexisNexis #0415-003
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In re Easley-Brooks

Feb
25
2013
Ruling
Debtor could reopen case to allow trustee to prosecute medical malpractice claim, undisclosed prior to conversion, for benefit of creditors and estate.
Procedural posture

Debtor moved pursuant to 11 U.S.C.S. § 350(b) and Fed. R. Bankr. P. 5010 to reopen her chapter 7 case to include a medical malpractice action in her schedule of assets and to enable the chapter 7 trustee to prosecute the malpractice action for the benefit of creditors and the debtor. Defendant in the malpractice action objected.

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Consumer opinion summary, case decided on February 25, 2013 , LexisNexis #0313-079
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In re Gibson

Jan
17
2008
Ruling
Personal injury claim proceeds received after confirmation but prior to conversion were properly excepted by debtors.
Procedural posture

The debtors filed a motion asking the court for a declaration that a personal injury claim and the proceeds therefrom, arising after the filing of their chapter 13 petition and before conversion to chapter 7, was theirs and not property of the estate to be administered by the chapter 7 Trustee. The Trustee objected.

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Consumer opinion summary, case decided on January 17, 2008 , LexisNexis #0208-130
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In re Doetsch

Sep
12
2007
Ruling
Debtor's failure to disclose postconversion inheritance was not indicative of bad faith conversion.
Procedural posture

After a bankruptcy debtor's chapter 13 plan was confirmed and the debtor made plan payments for almost two years, the debtor received an inheritance and subsequently converted the case to chapter 13. The U.S. Trustee moved for a determination that the inheritance was property of the debtor's chapter 7 estate under 11 U.S.C. § 348(f)(2) because the debtor converted the case in bad faith.

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Consumer opinion summary, case decided on September 12, 2007 , LexisNexis #1007-097
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