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ABI Journal

June 15, 2023

Two Circuits Now Hold: ‘13’ Trustees Aren’t Paid if Cases Dismiss Before Confirmation

The Ninth and Tenth Circuit disallow fees to chapter 13 trustee if the case is dismissed before confirmation. The identical issue is sub judice in the Second Circuit.

9th Circuit

May 19, 2023

Bifurcated Fee Arrangements Now Seem Impossible in South Carolina

Affirming the bankruptcy court, the district court found that bifurcated fees are excessive and that inadequate disclosures violated Sections 526 and 528.

4th Circuit, South Carolina

May 18, 2023

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.

7th Circuit, Illinois, Illinois Northern District

March 30, 2023

Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee

Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.

2nd Circuit, New York, New York Southern District

January 20, 2023

Tenth Circuit Doesn’t Pay ‘13’ Trustee if Dismissal Precedes Confirmation

The first court of appeals to rule on a question where lower courts are split, the Tenth Circuit finds the statute unambiguous and requires a chapter 13 trustee to disgorge his or her fee if the case is dismissed before confirmation.

10th Circuit

January 09, 2023

The Best Opinion Yet Ordering Refunds for Overpayment of U.S. Trustee Fees

All three courts to confront the question have now ordered the government to refund overpayments of U.S. Trustee fees.

4th Circuit, Virginia, Virginia Eastern District

January 03, 2023

Claims Trader Criticized in New York for an Unauthorized PACER Filing

A court filing by a claims trader was stricken from the docket because it contained judges’ direct email addresses.

2nd Circuit, New York, New York Southern District

December 29, 2022

Third Circuit Upholds Draconian Sanctions for Section 327 Nondisclosure

An opinion by Thomas Ambro shows how the Third Circuit won’t cut any slack for nonbankruptcy lawyers when it comes to retention disclosure.

3rd Circuit

December 05, 2022

DIP Counsel’s Right to Compensation Ends Immediately on a Trustee’s Appointment

Appealing an order appointing a chapter 11 trustee does not entitle the DIP’s counsel to compensation pending appeal, Judge Klein says.

9th Circuit, California, California Eastern District

November 28, 2022

A Two-Year Delay in Filing a Retention Application Resulted in Denial of Fees

Pittsburgh Bankruptcy Judge Gregory Taddonio says that lawyers must search in PACER before signing up a new client.

3rd Circuit, Pennsylvania, Pennsylvania Western District