1326

On Dismissal in ‘13,’ the Debtor Gets a Refund Regardless of a Property Execution

The Supremacy Clause overrides a property execution when a chapter 13 petition is dismissed before confirmation.
2nd Circuit May 9, 2025

No Circuit Split: 4 Circuits Say No ‘13’ Trustee Fees if Dismissal Precedes Confirmation

Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.