Appeal from the United States Bankruptcy Court
for the Eastern District of Kentucky at Lexington.
No. 13-51267—Tracey N. Wise, Judge.
Argued: May 26, 2016
Decided and Filed: January 4, 2017
Before: DELK, HUMPHREY, and OPPERMAN, Bankruptcy Appellate Panel Judges.
GUY R. HUMPHREY, Bankruptcy Appellate Panel Judge. In this appeal, Phaedra
Spradlin, Chapter 7 Trustee, appeals the bankruptcy court’s order and decision denying the
Trustee’s request for turnover of funds paid to the debtor’s criminal attorney and his firm postpetition
from a joint bank account that the debtor shared with her mother. The bankruptcy court
held that, assuming the funds belonged to the debtor, once the funds were transferred to the
attorney, they no longer belonged to the debtor, and turnover was not an appropriate remedy
since the fees were no longer property of the estate. For the reasons stated in this opinion, the
Panel affirms the bankruptcy court’s decision and order.