In Re Radebaugh

ORDER SUSTAINING TRUSTEE’S OBJECTION TO EXEMPTION

ARTHUR B. FEDERMAN, Bankruptcy Judge.

The matter before the Court is the objection by the Chapter 7 Trustee to the debtors’ claim for exemption in undistributed Chapter 13 plan payments. The debtors, Kyle and Zaneta Radebaugh, filed a Chapter 13 petition, and their plan was subsequently confirmed. After making direct payments to the Chapter 13 Trustee, the debtors converted the Chapter 13 proceeding to a case under Chapter 7 and now claim that the undistributed Chapter 13 plan payments, totaling $1,582.26, held by the Chapter 13 Trustee, are…