In Re Shepherd

MEMORANDUM AND ORDER

FULLAM, District Judge.

Albert Shepherd, an employee of the School District of Philadelphia, had authorized his employer to make periodic deductions from his salary and to pay the money to the Public School Employees Credit Union. After Mr. Shepherd filed a Chapter 13 case under the Bankruptcy Code, the employer, unaware of the bankruptcy filing, continued the payroll deductions, and paid more than $500 to the Credit Union.

In the bankruptcy court, the debtor sought to compel the Credit Union to return the post-petition deductions, while the Credit Union sought to retain…