Wages after bankruptcy conversion
Harris v. Mary K. Viegelahn, Chapter 13 Trustee
In brief
Harris was entitled to wages the Chapter 13 trustee had not yet distributed, and the Supreme Court overturned the Fifth Circuit’s judgment.
- Where it stands
- Decided
Decided 9-0 · May 18, 2015 · Opinion by Justice Ginsburg
- What it’s about
- The Supreme Court ruled that when Charles Harris changed his Chapter 13 repayment bankruptcy to Chapter 7 in good faith, trustee Mary Viegelahn had to return wages he had earned after filing that she had not yet paid to creditors.
- Who it affects
- Debtors who convert from Chapter 13 to Chapter 7 are entitled to post-filing wages their Chapter 13 trustee has not yet distributed.
Summary: written with AI from the case record.
What it's about
It overturned the Fifth Circuit’s ruling and sent the case back to the lower court (remanded).
Harris filed under Chapter 13, a repayment bankruptcy, then converted his case to Chapter 7 while the trustee held wages he had earned after filing.
Question presented
1. What happens to postpetition wages held by a Chapter 13 trustee at the time the case is converted to Chapter 7? 2. Does the Code require return of the funds to the debtor, or does it require their distribution to creditors?
What the Court decided
Holding
A debtor who converts to Chapter 7 is entitled to return of any postpetition wages not yet distributed by the Chapter 13 trustee. 757 F. 3d 468, reversed and remanded.
- Result
- Reversed
The vote
What's next
The case returns to the Fifth Circuit for further proceedings under the Supreme Court’s decision.
Documents
Opinions
Docket activity
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AI analysis generated: Case Briefing
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Opinion added: Harris
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.