The United States Supreme Court recently ruled in two bankruptcy cases. First, in Harris v. Viegelahn the Supreme Court held unanimously that a Chapter 13 debtor who converts to Chapter 7 is entitled to the return of any post petition wages not already distributed by the Chaper 13 Trustee. The Supreme Court’s ruling reversed a decision of the Fifth Circuit that held that a former trustee was authorized to distribute a debtor’s post-petition wages despite conversion.
Secondly, in Bullard v. Blue Hills Bank,the Supreme Court affirmed an order of the First Circuit Court of Appeals dismissing the appeal of a Chapter 13 debtor for lack of jurisdiction. The Supreme Court held that the order of the Bankruptcy Court denying confirmation of the debtor’s Chapter 13 plan was not a final order from which the debtor could immediately appeal as a matter of right. The Supreme Court reasoned that denial of confirmation is not a final order as the debtor is entitled to file an amended plan of reorganization.
The Supreme Court’s decision in Bullard may have a significant impact in bankruptcy cases in this Circuit, as courts in the Third Circuit, including the United States Bankruptcy Court for the District of Delaware, have held that an order denying confirmation in Chapter 11 cases are final orders, appealable as a matter of right.
