Local Rule LOCAL RULE 1019-1: CONVERSION – PROCEDURE FOLLOWING
Bankr. M.D.N.C. — General rule
LOCAL RULE 1019-1 CONVERSION – PROCEDURE FOLLOWING
(a) Disposition of Funds Held by Chapter 13 Trustee.
(1) Retaining Funds. If a chapter 13 case is converted to a chapter 7 case, the trustee may retain possession of any funds collected but not yet disbursed at the time of the conversion pending:
(A) final determination as to whether the debtor converted the case in bad faith; and
(B) final determination as to whether all or any portion of the collected but undisbursed funds constitute prepetition wages or property acquired by the debtor before the filing of the petition.
(2) Objection or Motion Relating to Distribution of Funds. Any objection or motion related to the distribution of funds held by the trustee must be filed within 10 days after the case is converted.
(b) Final Report and Account.
If a chapter 13 case is converted to a chapter 7 case, the trustee must file a final report and account by the later of (1) 45 days after the conversion, or (2) 30 days after entry of a final order on any objection or motion described in subsection (a)(2). Filing constitutes transmission of the final report and account to the bankruptcy administrator.