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The Case for Standing Chapter 13 Trustee Fee Retention in Pre-Confirmation Dismissals

The Case for Standing Chapter 13 Trustee Fee Retention in Pre-Confirmation Dismissals By Daryl J. Smith Chapter 13 is an essential component of the U.S. consumer bankruptcy system, offering debtors an opportunity to reorganize their finances and repay creditors over

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.
7th Circuit May 3, 2024

Three Circuits Now Say ‘13’ Trustees Aren’t Paid if Dismissal Precedes Confirmation

The same question has been sub judice in the Second Circuit for 15 months. Is the Second Circuit on the cusp of making a circuit split?

Benchnotes August 2023

Benchnotes By Aaron M. Kaufman, Bradley D. Pack and Christina Sanfelippo Bankruptcy Court Limits Bartenwerfer to Partnership or Agency Debts, Finding It Inapplicable to Fraudulent-Transferee Liability Can the recipient of a fraudulent transfer discharge the claim in

Benchnotes July 2023

Benchnotes By Bradley D. Pack, Aaron M. Kaufman and Christina Sanfelippo Supreme Court Holds that § 363(m) Does Not Create Jurisdictional Bar; Side-Steps Mootness Issue Under 11 U.S.C. § 363(m), absent a stay of an order approving a sale or lease of bankruptcy estate

Seventh Circuit to Rule on Paying ‘13’ Trustees if Dismissal Precedes Confirmation

Within the next year, four circuits will have ruled on a split where some lower courts pay chapter 13 trustees and others don’t when dismissal precedes confirmation.