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 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.....
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.....
If a creditor doesn’t cash a $230,000 distribution check on an allowed unsecured claim, is the chapter 7 debtor entitled to the funds 10 years later on the idea that the $230,000 represented a surplus.....
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.....
Fighting like cats and dogs may be acceptable in a matrimonial case, but not when special counsel represents a debtor who is restructuring her debt in chapter 11.
Bankruptcy Judge Marvin Isgur of.....
Simply filing a motion to extend the deadline for objecting to discharge or dischargeability does not extend the deadline indefinitely, according to District Judge Fred Biery of San Antonio, who.....
In an involuntary petition, creditors who received voidable transfers may not be counted in deciding whether the alleged debtor has 12 or more creditors. On an issue where lower courts are split.....
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.....