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.
The estate of a chapter 13 debtor who dies before completing plan payments may still be granted a discharge despite the decedent’s inability to complete the required financial management course.....
Having decided that “Chapter 13 has morphed into the pursuit of loss mitigation as its sole purpose in which debtors file cases they never intend to bring to confirmation,” Bankruptcy Judge Robert E.....
The successful outcome of a chapter 7 case that pays creditors in full does not justify compensating the trustee’s attorney for performing duties imposed on the trustee, the Fifth Circuit said in a.....
Upholding Bankruptcy Judge Robert E. Grossman, a district judge in Brooklyn, N.Y., ruled that a chapter 13 trustee is entitled to compensation if the case is dismissed before confirmation.
In most.....
The Supreme Court’s Espinosa decision enabled Bankruptcy Judge Robert L. Jones of Lubbock, Tex., to present the debtors with a sizeable and unexpected gift alongside their chapter 13 discharges.
The.....
Dismissal with prejudice is a hot topic in chapter 13 for courts throughout the country. Bankruptcy Judge Michelle V. Larson of Dallas dismissed a case for “cause” under Section 1307(c) and imposed a.....
The pleading requirements laid down by the Supreme Court in Iqbal and Twombly do not apply to the filing of an involuntary bankruptcy petition under Section 303. The petitioning creditor need only.....
A trustee may not sell claims of the estate when there is only minimal incremental benefit to unsecured creditors, according to Bankruptcy Judge Louis A. Scarcella of Central Islip, New York.
In his.....
He didn’t abolish so-called chapter 20 entirely, but Bankruptcy Judge Robert E. Grossman of Central Islip, N.Y., has made it unworkable for many chapter 13 debtors.
The typical chapter 20 case works.....
Even though there was benefit only to the debtor and none to the estate, a chapter 13 debtor’s lawyer was entitled to compensation under Section 330(a)(4)(B), an exception to the so-called American.....