Va. Dep’t of Soc. Servs. v. Webb (P)

A bankruptcy petitioner made payments to the Trustee before his petition was dismissed. After the dismissal, Virginia’s Department of Social Services, Division of Child Support Enforcement sought to obtain the payments held by the Trustee to apply against the petitioner’s delinquent child support. The bankruptcy court correctly ordered the Trustee to return the funds to the petitioner.

Any state authority under Code § 63.2-1929 for levy on the Trustee directly conflicts with the federal statutory mandate in 11 U.S.C. § 1326(a)(2) that the Trustee refund the post-petition payments to Webb. Thus, § 1326(a)(2) pre-empts Code § 63.2-1929 and requires that the Trustee return the post-petition payments to the petitioner.

Va. Dep’t of Soc. Servs. v. Webb (P), No. 17-2328, Nov. 19, 2018. 4th Cir. (Agee) from WDVA at Charlottesville (Moon).

Categories: 4th U.S. Circuit Court of Appeals, Opinions, Published

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