So you filed chapter 13 bankruptcy but later decide to convert your case to a chapter 7 case. What happens to the money that the chapter 13 trustee is holding in your chapter 13 account? Before now there was a difference of opinions among chapter 13 trustees, and bankruptcy courts. Some chapter 13 trustees were disbursing those funds to creditors, and some trustees were refunding the money to the person in bankruptcy. But the United States Supreme Court resolved that issue once and for all in the case of Harris v. ViegelahnThe Supreme Court held that the remaining funds belong to the person in bankruptcy, and stated that the chapter 13 trustee has no authority to disburse the funds to creditors.


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