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.
Another bankrupt lost when trying to find a loophole that would allow discharging post-filing obligations arising in connection with a home that the debtor intended to abandon.
The Southern District of New York has a so-called loss mitigation program designed to promote settlement talks between mortgage lenders and bankrupt consumers at risk of losing their homes in.....