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 so-called Holder Rule is an important weapon that debtors can use when the originator of consumer paper has not lived up to its contractual obligations.
In a chapter 13 case before Bankruptcy.....
BAPCPA Limits Remedies Against Debtors Who Don’t Reaffirm or Surrender
In the BAPCPA amendments in 2005, Congress may have intended to bar debtors from allowing mortgages to “ride through” bankruptcy.....
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.....