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.
One of the BAPCPA amendments in 2005, Section 521(i)(1), is unforgiving.
If a chapter 13 case is dismissed automatically for failure to file all required papers within 45 days, the bankruptcy court.....
On an issue where the courts are split, Bankruptcy Judge Guy R. Humphrey of Dayton, Ohio, decided that a chapter 7 trustee was entitled to no compensation because the trustee had made no distributions.....
Another Workaround Following the Prohibition of Nunc Pro Tunc Orders
Even though the Supreme Court has virtually prohibited the entry of orders nunc pro tunc, a bankruptcy court is not precluded from.....