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 Robert H. Jacobvitz of Albuquerque, N.M., described a circumstance when an individual debtor is entitled to pursue an appeal after conversion of a chapter 11 case to chapter 7.
The.....
Is a chapter 7 trustee paid anything if the trustee discovers nonexempt property that would pay creditors in full but the case converts to chapter 13 before the trustee makes distributions?
In his May.....
Debtors’ counsel have a problem. If a case converts to chapter 7 before confirmation of a chapter 13 plan, they might not be paid.
If a chapter 13 case is dismissed before confirmation, Section 1326(a).....