May 27, 2021

Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees

The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.

2nd Circuit

May 06, 2021

On Dismissal of a ‘13,’ Barton May (or May Not) Bar Garnishments

Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.

10th Circuit

May 03, 2021

Another Circuit Upholds the 2018 Increase in U.S. Trustee Fees

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.

4th Circuit

April 19, 2021

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

9th Circuit, California, California Central District

April 09, 2021

Judge Isgur Knocks Down a Special Counsel’s Fees for ‘Unprofessional’ Conduct

Incivility may be acceptable in matrimonial matters, but not when the lawyer represents a debtor.

5th Circuit, Texas, Texas Southern District

March 12, 2021

Trustees Don’t Need a Pecuniary Interest to Have Standing to Appeal, Fifth Circuit Says

Fee allowances aren’t made with the benefit of hindsight, the Fifth Circuit says.

5th Circuit

March 11, 2021

Reverse Contingencies Are Permissible in Bankruptcy Cases, Judge Olack Says

Compensation in a bankruptcy case can be based on savings to the estate, not only on cash recoveries by the estate.

5th Circuit, Mississippi, Mississippi Southern District

March 04, 2021

Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test

Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.

7th Circuit, Wisconsin, Wisconsin Eastern District

March 02, 2021

Landlord Socked $606,000 for Opposing Lease Assumption

Fee-shifting clause in the lease entitled the debtor to recover $606,000 in attorneys’ fees from the landlord for opposing lease assumption.

9th Circuit, California, California Central District

January 29, 2021

Contested Matters Aren’t ‘Civil Actions’ Under the Equal Access to Justice Act

A contested matter in bankruptcy court isn’t a ‘civil action’ allowing the debtor to recover attorneys’ fees from the U.S. Trustee under the Equal Access to Justice Act.

6th Circuit, Ohio, Ohio Northern District