The Case for Standing Chapter 13 Trustee Fee Retention in Pre-Confirmation Dismissals
The Case for Standing Chapter 13 Trustee Fee Retention in Pre-Confirmation Dismissals By Daryl J. Smith Chapter 13 is an essential component of the U.S. consumer bankruptcy system, offering debtors an opportunity to reorganize their finances and repay creditors over
How to Liquidate a Secured Lender’s Collateral and Still Get Paid
To liquidate an underwater lender’s collateral, there must be a carveout giving unsecured creditors a ‘meaningful distribution.’
No Circuit Split: 4 Circuits Say No ‘13’ Trustee Fees if Dismissal Precedes Confirmation
Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.
A Chapter 11 Debtor May Sometimes Prosecute an Appeal After Conversion to Chapter 7
After conversion, the debtor was entitled to prosecute an appeal at the debtor’s expense when the appeal involved the debtor’s personal liability.
In ‘13,’ a Creditor Wanted Debtors’ Counsels’ Fees to Come Last, Not First
Chicago’s Bankruptcy Judge Donald Cassling nixed an idea that would have made chapter 13 unpalatable for debtors’ counsel.
Debtors’ Lawyer Has No 7th Amendment Right to Sue for Post-Petition Fees, Circuit Says
The debtors’ inequitable conduct didn’t relieve counsel of the duty to disclose fees charged for post-petition litigation.
Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions
Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).