Local Rule 3015-2: Disposition of Funds in Converted Chapter 13 Cases
Bankr. W.D.N.C. — General rule
Local Rule 3015-2 Disposition of Funds in Converted Chapter 13 Cases Unless otherwise ordered by the court, any funds received by the Chapter 13 trustee and not yet distributed prior to the conversion of a case shall be disposed of as follows:
(a) Funds on hand of $2,500 or less shall be disbursed to the debtor in care of the debtor's attorney, if any, by the Chapter 13 trustee;
(b) If the funds on hand exceed $2,500, the Chapter 13 trustee shall file and serve on all parties in interest a notice of the amount of the funds and the trustee's intention to disburse all of the funds to the debtor. Any party who objects to the proposed disbursement to the debtor shall have 28 days from the date of the filing of the Chapter 13 trustee's notice to file an objection and request a hearing. Any hearing shall be held on the next available court date, and the objecting party shall provide written notice of the date, time, and location of the hearing to all parties. If no objection is timely filed, all of the funds on hand shall be paid by the Chapter 13 trustee to the debtor in care of the debtor's attorney, if any. If, after notice and a hearing, the Chapter 13 trustee's request for authority to disburse all funds to the debtor is denied in whole or in part, the funds on hand shall be paid by the Chapter 13 trustee as ordered by the court.