Joining the Tenth Circuit, the Ninth Circuit also has held that chapter 13 trustees are not paid their fees when cases are dismissed before confirmation. The identical issue was argued on February 15 before the Second Circuit.
In short order, we’ll have either unanimity or a split of circuits. A split will give rise to an issue worthy of a grant of certiorari by the Supreme Court.
Notably, the Ninth Circuit’s opinion on June 12 adopted reasoning in an amicus brief filed in support of the debtor by the National Consumer Bankruptcy Rights Center and National Association of Consumer Bankruptcy Attorneys.
A chapter 13 debtor’s right to dismissal under Section 1307(b) is not a get-out-of-jail-free card for a debtor to escape sanctions.
As Bankruptcy Judge Christopher M. Klein of Sacramento, Calif.....
Eventually, the Supreme Court will decide whether debtors can be compelled to arbitrate core and non-core disputes with creditors. For now, at least, courts in the Ninth Circuit are giving short.....