Under a court decision decided in 2014, the 5th Circuit Court of Appeals ruled that if your chapter 13 is already confirmed, and you convert to chapter 7, the chapter 13 trustee must distribute any undistributed funds to your chapter 13 creditors in accordance with the confirmed plan. Viegelahn v Harris, 5th Cir. 2014.

Since another circuit court has ruled differently, it's possible that this could change sometime in the future, if the U.S. Supreme Court decides to consider the conflict between the two courts.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization