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.
Filing a divorce action creates a vested but inchoate property interest in Colorado that could increase the value of the bankruptcy estate of a divorcing spouse. Dismissal of the divorce proceeding.....
A final decree of divorce containing a division of marital property does not create a debtor/creditor relationship between the former spouses, according to an October 27 opinion by Bankruptcy Judge.....
“The accepted procedure for allowing state courts to divide marital property when one spouse files bankruptcy is to modify the automatic stay and abstain from adjudicating the property settlement,”.....
Divorcing While Bankrupt Lays Traps for the Unwary
When divorce coincides with bankruptcy, the debtor’s matrimonial lawyer should take counsel from a bankruptcy expert to avoid the kind of mistakes.....