Justices Bemoan Guidance 'Void' On Ch. 13 Conversion Gap

Law360, New York (April 1, 2015, 8:27 PM EDT) -- U.S. Supreme Court Justice Antonin Scalia and others complained during Wednesday's oral arguments that Congress had provided no guidance at all on the proper fate of distributions from a converted Chapter 13, instead forcing debtors to “roll the dice,” as lawyers tussled over whether debtors or creditors should receive ambiguous leftovers.

The sentiments came during oral arguments in Harris v. Viegelahn, in which the high court will decide whether undistributed funds held by a Chapter 13 trustee go to creditors or back to the debtor —...
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