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§ 1326(a)(2)

In re Inyamah

Ruling
Plan payments less administrative expenses and protection payments were to be returned to debtor upon dismissal of case.
Procedural posture

A chapter 13 trustee filed a motion to disperse funds to a debtor following the dismissal of the debtor's case. A creditor objected, asserting that the funds should be paid to it based on its judgment and garnishment against the debtor.

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Consumer opinion summary, case decided on November 20, 2007 , LexisNexis #0108-019

In re Bailey

Ruling
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.
Procedural posture

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.

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opinion summary, case decided on September 23, 2005 , LexisNexis #0106-070