PATRICK FLATLEY, Bankruptcy Judge
On November 3, 2010, Dennis Majkowski (the "Debtor") died. The Debtor's Last Will and Testament appointed Tonya Majkowski as executrix of his death estate, and, on March 11, 2011, Tonya Majkowski filed a motion to dismiss the Debtor's pending Chapter 13 case and a motion for the Trustee to cease disbursements under the Debtor's confirmed plan.
Ms. Majkowski asserts that the funds held by the Chapter 13 Trustee should be paid to her as executrix of the Debtor's death estate rather than be disbursed to the creditors in this case. The Trustee asserts that the funds should be disbursed according to the terms of the Debtor's confirmed Chapter 13 plan.
Property of a Chapter 13 estate includes "earnings from services performed by the debtor after the commencement of the case but before the case is . . . dismissed." 11 U.S.C. § 1306(a)(2). Because an order granting a voluntary dismissal of a Chapter 13 case is effective nunc pro tunc on the date the motion for voluntary dismissal is filed, In re Campbell, Case No. 07-457, 2007 WL 4553596, *7 (Bankr.N.D.W. Va. Dec. 18, 2007), a debtor's plan payments to a Chapter 13 trustee after the filing of a motion for voluntary dismissal are not property of the estate because the estate ceases to exist, and should be remitted to the debtor upon dismissal.
As of May 23, 2011, the Trustee has on hand the sum of $13,386.41. Of that amount, all but $1,946.16 was received after the March 11, 2011 motion to voluntarily dismiss. Therefore, the $11,440.25 on hand as of May 23, 2011, and any other funds held by the Trustee that were received by the Trustee after March 11, 2011, is not property of the estate and must be remitted to Ms. Majkowski.
Regarding the $1,946.16 received by the Trustee post-confirmation, before the filing of the motion to dismiss, but not yet distributed, "unless the court, for cause, orders otherwise, a dismissal of a case . . . revests the property of the estate in the entity in which such property was vested immediately before the commencement of the case. . . ." 11 U.S.C. § 349(b)(3).
At least one court has held that, notwithstanding § 349(b)(3)'s revesting provisions, nothing in the Bankruptcy Code relieves the trustee from the statutory duty to distribute funds in accordance with a confirmed plan under § 1326(a)(2). In re Parrish, 274 B.R. 424, 429 (Bankr.D.D.C. 2002) ("[U]nless dismissal vacates the effectiveness of a confirmed plan (and nothing in the Bankruptcy Code says it does), § 1326(a)(2) requires the trustee to disburse those funds in accordance with the confirmed plan without regard to who holds title."). This court, however, finds that the better reasoned view is that § 1326(a)(2), by its very terms, is inapplicable to funds paid to the trustee post-confirmation but not disbursed pursuant to the confirmed plan at the time of dismissal. See In re Parker, 400 B.R. 55, 62 (Bankr.E.D.Pa. 2009) ("[T]he general provision of [§] 349(b)(3) may govern postconfirmation payments held by a chapter 13 trustee upon dismissal. It does not, however, undermine the rights of creditors to funds paid pre-confirmation as specified in [§] 1326(a).").
Parker is the better-reasoned view because "any such payment" in § 1326(a)(2) explicitly refers to payments made "not later than 30 days after the date of the filing of the plan or the order for relief, whichever is earlier . . .," 11 U.S.C. § 1326(a)(1), and "retained by the trustee until confirmation or denial of confirmation." 11 U.S.C. § 1326(a)(2). Therefore, § 1326(a)(2) applies only to payments paid to the trustee after the commencement of the case but prior to confirmation or denial of confirmation, and is inapplicable to funds paid to the trustee post-confirmation; such funds revert to the debtor pursuant to § 349(b)(3).
Here, the remaining $1,946.16 held by the Trustee was received by the Trustee post-confirmation and would have otherwise been disbursed pursuant to the Debtor's confirmed plan. But the funds were not disbursed pursuant to the confirmed plan before the filing of the March 11, 2011 motion to voluntarily dismiss, and, thus, they reverted to the Debtor pursuant to § 349(b)(3).
Therefore, it is hereby
ORDERED that the Debtor's Motion to Dismiss (Doc. No. 234), filed March 11, 2011, is GRANTED nunc pro tunc. It is
FURTHER ORDERED that the Debtor's Motion to Cease Disbursements (Doc. No. 235), filed March 11, 2011, is GRANTED. Any post-confirmation payments held by the Trustee at the time of dismissal must be returned to Ms. Majkowski as executrix of the Debtor's death estate.
Notice Recipients
District/Off: 0424-3 User: blw Date Created: 7/6/2011 Case: 3:07-bk-00199 Form ID: pdfdoc Total: 78 Recipients submitted to the BNC (Bankruptcy Noticing Center) without an address: r Paula Miller TOTAL: 1 Recipients of Notice of Electronic Filing: ust United States Trustee ustpregion04.ct.ecf@usdoj.gov tr Helen M. Morris ch13info@wvtrustee.org cr BBT bankruptcy@bbandt.com aty Aaron C. Amore amore@charlestownlaw.com aty Andrea K. Reynolds andreakreynolds@frontier.com aty Christopher R. Arthur carthur@siwpc.com aty David M. Thomas david.thomas@dinslaw.com aty Fabio Crichigno fcrichigno@siwpc.com aty Joe M. Lozano jmlc@bkcylaw.com aty Kristin Shaffer kshaffer@bowlesrice.com aty Lawrence Joseph Buckley ljb@bvwlaw.com aty Rita R. Valdrini rita.valdrini@usdoj.gov aty Susan Cannon-Ryan scryan@wvtrustee.org aty Timothy J. Amos timamos@goldenamos.com TOTAL: 14 Recipients submitted to the BNC (Bankruptcy Noticing Center): db Dennis Henry Majkowski 30 Chandler Drive Shepherdstown, WV 25443 cr Chase Bank USA, NA PO Box 740933 Dallas, TX 75374 cr National City Bank c/o David M. Thomas, Esq. Dinsmore Shohl LLP Dinsmore Shohl Building 215 Don Knotts Blvd., Suite 310 Morgantown, WV 26501 r Timeshares By Owner 7111 Grand National Drive, Suite 103 Orlando, FL 32819 cr PRA Receivables Management, LLC PO Box 41067 Norfolk, VA 23541 cr Bank United, FSB 14817 Oak Lane Miami Lakes, FL 33016 cr Nationstar Mortgage P.O. Box 829009 Dallas, TX 75382-9009 intp Tonya L. Majkowski 30 Chandler Drive Shepherdstown, WV 25443 aty Courtney A. Kirtley Bowles Rice McDavid Graff Love LLP 600 Quarrier Street Charleston, WV 25301 aty Johnna L. Faber Bowles Rice McDavid Graff Love LLP 600 Quarrier Street Charleston, WV 25301 aty Tanya L. Godfrey Office of the Chapter 13 Trustee Post Office Box 8535 South Charleston, WV 25303 1024603 American Express Centurion Bank c/o Becket and Lee LLP POB 3001 Malvern PA 19355-0701 1024602 American Express Travel Related Services Co, Inc c/o Becket and Lee LLP POB 3001 Malvern PA 19355-0701 1018028 Amex P O Box 297871 Fort Lauderdal, FL 33329 1018031 BB Bankruptcy Section/100-50-01-51 P.O. Box 1847 Wilson, NC 27894 1023073 Bank United FSB 7815 NW 148th Street Miami Lakes, FL 33016 1018029 Bank of America Bankruptcy Department P.O. Box 15025 Wilmington, DE 19850-5026 1018032 Chase 800 Brooksedge Blvd Westerville, OH 43081 1022692 Chase Bank USA, NA c.o. Creditors Bankruptcy Service PO Box 740933 Dallas, TX 75374 1018033 Citibank Pob 6241 Sioux Falls, SD 57117 1018034 Citibank Usa Sears Po Box 6189 Sioux Falls, SD 57117 1018036 Credit First N.A. P.O. Box 81344 Cleveland, OH 44188 1023667 Credit First NA PO Box 818011 Cleveland, OH 44181-8011 1018037 Deere Credit Services 8402 Excelsior Dr Madison, WI 53717 1046097 Department of the Treasury Internal Revenue Service 425 Juliana Street Stop 2116 Parkersburg, WV 26101 1022773 Department of the Treasury — IRS 425 Juliana Street Stop 2116 Parkersburg, WV 26101 1023077 FPC Financial FSB Attn: Kristen Jagerson PO Box 6600 Johnston, IA 50131-6600 1026713 Fairshare Vacation Owners Association 10750 West Charleston Blvd., Suite 130 Las Vegas, NY 89135 1018039 G I C Federal Cred Un 26155 Euclid Ave Euclid, OH 44132 1018040 Gemb/walmart Po Box 981400 El Paso, TX 79998 1018041 HSBC P.O. Box 5244 Carol Stream, IL 60197 1018042 Infibank 3490 Piedmont Rd Ne Ste Atlanta, GA 30305 1020688 Internal Revenue Service PO Box 1040 Parkersburg, WV 26102 1020689 Internal Revenue Service PO Box 21126 Philadelphia, PA 19114 1018043 Jc Penney Po Box 981402 El Paso, TX 79998 1018044 Kohls/chase N56 W 17000 Ridgewood Dr Menomonee Falls, WI 53051 1025344 LVNV Funding LLC its successors and assigns as assignee of Citibank Resurgent Capital Services PO Box 10587 Greenville, SC 29603-0587 1022543 LVNV Funding LLC its successors and assigns as assignee of Citibank USA Resurgent Capital Services PO Box 10587 Greenville, SC 29603-0587 1021635 MTBank Consumer Collections Department Attn: Bankrupcty Operations PO Box 767 Buffalo, NY 14240 1018045 MtBank Na 1 Fountain Plz Fl 4 Buffalo, NY 14203 1252309 NATIONSTAR MORTGAGE 350 HIGHLAND DRIVE LEWISVILLE, TEXAS 75067 1018048 NCO Financial 507 Prudential Rd. Horsham, PA 19044 1018046 National City Bank 1 National City Parkway Kalamazoo, MI 49009 1023553 National City Bank PO Box 94982 Cleveland, OH 44101 1252608 Nationstar Mortgage PO Box 829009 Dallas, TX 75382 1103749 Portfolio Recovery Associates, LLC PO Box 41067 Norfolk, VA 23541 1018051 Sears P.O. Box 6924 The Lakes, NV 88901 1018052 Sears/cbsd Po Box 6189 Sioux Falls, SD 57117 1028293 TOYOTA MOTOR CREDIT CORP. TOYOTA/LEXUS FIN. SVCS. 500 REDBROOK BOULEVARD OWINGS MILLS, MD 21117 1018053 Tonya Majkowski 30 Chandler Dr Shepherdstown, WV 25443 1026228 Toyota Motor Credit PO Box 371339 Pittsburgh, PA 15250 1021333 USAA Federal Savings Bank c/o Weinstein Riley, P.S. 2101 Fourth Ave., Suite 900 Seattle, WA, 98121 1018055 Usaa Fsb 10750 Mc Dermott Fwy San Antonio, TX 78288 1018056 Wachov/ftu Po Box 3117 Winston Salem, NC 27102 1100910 Wells Fargo PO Box 7648 Boise, ID 83707 1018057 Wells Fargo Auto P.O. Box 29704 Phoenix, AZ 85038 1033155 Wells Fargo Bank, N.A. Wells Fargo Auto Finance P.O. Box 29704 Phoenix, AZ 85038-9704 1018058 Wright Patterson Crdt 2455 Executive Blvd Fairborn, OH 45324 1018059 Wyndham Vacation Resorts P.O. Box 98940 Las Vegas, NV 89193 1026714 Wyndham Vacation Resorts Inc. 10750 West Charleston Blvd., Suite 130 Las Vegas, NV 89135 1018060 Zwicker Assoc 80 Minuteman Road Andover, MA 01810 1029565 eCAST Settlement Corporation assignee of Chase Bank USA NA POB 35480 Newark NJ 07193-5480 1027181 eCAST Settlement Corporation assignee of GE Money Bank/JC Penney Consumer POB 35480 Newark NJ 07193-5480 TOTAL: 63