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.....
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.....
Fifth Circuit Facilitates ‘No Money Down’ Chapter 13s
The Fifth Circuit opened the door a crack for so-called no-money-down chapter 13s, where debtors’ counsel are not required to eat the filing fee.....
A district judge in Shreveport, La., called a halt to a local practice of paying counsel only after confirmation of a chapter 13 plan and therefore automatically disallowing compensation whenever a.....