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.
Debtors and trustees should read a Fifth Circuit opinion to understand how the sale of a debtor’s claims should be structured to prevent the sale from being champertous and void.
The debtor severely.....
Executory Contracts Are Automatically Rejected Even if Unscheduled, Fifth Circuit Holds
On a topic where there is scant appellate authority, the Fifth Circuit held that a trustee cannot assume and.....
In a case where prebankruptcy exemption planning backfired disastrously, the Fifth Circuit held that a nonfiling spouse had no homestead exemption rights because the husband’s bankruptcy trustee sold.....
Although insurance proceeds from damage to a debtor’s auto ran through the chapter 13 trustee’s account, the trustee was properly barred from exacting a fee on the money that went to the lienholder.....