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.
Bankruptcy Judge Donald R. Cassling of Chicago overruled a confirmation objection that would have driven lawyers away from the chapter 13 practice if sustained. He rejected an unsecured creditor’s.....
Bankruptcy Judge Timothy A. Barnes of Chicago certified a question for the Seventh Circuit to decide on direct appeal: May a chapter 13 trustee be paid her fee if the case is dismissed before.....
Drawing on Harris v. Viegelahn, Bankruptcy Judge LaShonda L. Hunt of Chicago held that a chapter 13 debtor’s attorney cannot be paid allowed compensation from funds in the hands of the chapter 13.....