What happens to payments made under Ch 13 that have not been disbursed if case is dismissed or converted to Ch 7?

That depends on the rules of the court in your district.  Here in the Central District of California, when a Chapter 13 case is dismissed, any funds held by the Trustee are turned over to debtor's counsel who can retain them for their unpaid fees and return the rest (if any) to the debtor. If the case is converted to Chapter 7 and the Trustee is still holding funds paid by the debtor, I'm not totally sure what happens.  My guess is it would also get returned to debtor's counsel or the debtor unless the case is converted in bad faith, in which case it would probably be turned over to the Chapter 7 Trustee. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.