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.
As everyone knows (or should know), the denial of a motion to withdraw the reference is not a final, appealable order. The Tenth Circuit teaches us that denial of withdrawal remains interlocutory.....
Judgment creditors were given permission under the Barton doctrine to conduct garnishment proceedings in state court to collect some $29,000 held by a chapter 13 trustee in a case that was dismissed.....
If a chapter 13 case has been dismissed before confirmation, the Tenth Circuit Bankruptcy Appellate Panel seems inclined to allow judgment creditors to garnish funds that the trustee would otherwise.....