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.
What happens in chapter 13 if a secured creditor doesn’t file a claim, and the debtor doesn’t file a claim for the creditor? There are two schools of thought.
Here’s the situation. The debtor owns a.....
On an issue where the courts are divided, bankruptcy and district judges in Indianapolis allow a chapter 13 debtor’s attorney to be paid in full before secured creditors receive more than adequate.....
Courts Split on Arbitrating Dischargeability of Student Loans
Unless the circuit courts are unanimous, the Supreme Court ultimately will decide whether individual debtors can be forced to arbitrate.....